A Chinese cryptocurrency entrepreneur who invested $75 million in President Donald Trump’s digital asset ventures while facing federal fraud charges has received a significant break from securities regulators, prompting accusations of pay-to-play politics from Democratic lawmakers and ethics watchdogs.
Justin Sun, 34, founder of the Tron blockchain platform, saw his Securities and Exchange Commission case paused in February after he and the agency’s lawyers jointly requested a stay to explore a “potential resolution.” The development came months after Sun became the largest investor in World Liberty Financial, a crypto platform backed by Trump and his family.
The SEC sued Sun and his companies in March 2023, accusing them of illegally distributing crypto assets, manipulating trading volumes, and concealing celebrity endorsement payments. The case had been actively pursued for nearly two years before the recent pause.
Sun’s investments in Trump-related ventures began three weeks after the November election, when he put $30 million into World Liberty Financial. The investment pushed the platform past a threshold that triggered profit-sharing arrangements, potentially netting Trump-affiliated entities more than $15 million, according to company filings.
Sun later became the top holder of Trump’s $TRUMP meme coin, purchasing more than $18 million worth of tokens to secure a dinner invitation with the president at his Virginia golf club. The dinner was part of a contest for the platform’s largest investors.
“Honored to support @POTUS and grateful for the invitation,” Sun wrote on X, confirming his participation in the dinner.
Democratic lawmakers and ethics experts have criticized the timing of Sun’s legal relief. Sen. Richard Blumenthal of Connecticut called it “an unprecedented, pay-to-play scheme to provide access to the presidency to the highest bidder.”
Robert Weissman, co-president of consumer advocacy group Public Citizen, criticized the arrangement in stark terms.
“To call it an ethical problem is to understate how fundamentally corrupt it is,” Weissman said. “They’ve set up a way for people to funnel money to Donald Trump, and now it’s happening.”
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