Government shutdown delays SEC v. Justin Sun case again
The stay in the Securities and Exchange Commission (SEC) case against Justin Sun has been extended again, with the request specifically referencing “a lapse in appropriations,” which resulted from the government shutdown.
According to a recent filing, SEC lawyers who had been assigned to the case “have been furloughed and prohibited from working.”
This case, which was originally brought in 2023 against Sun, was revised in 2024, and was stayed in February of this year.
Read more: SEC sues Justin Sun over TRX, BTT, market manipulation
The lawsuit alleged that Sun had participated in market manipulation, sold unregistered securities, and hired influencers to promote his tokens without the appropriate disclosure.
Sun has become a vocal financial supporter of Trump, and is the largest investor in World Liberty Financial, a project that Trump profits from.
World Liberty Financial, for its part, named Sun as an adviser to the project.
Read more: Trump-endorsed World Liberty Financial buys Justin Sun tokens
Since then, World Liberty Financial has blacklisted a large number of the tokens that Sun purchased and even publicly insinuated that he was misappropriating them.
Sun was also a large investor in the TRUMP memecoin project, which also benefits the president financially. Its tokens were even used to give large investors, including Sun, the chance to have dinner with the president.
Strangely, the address that signed for this dinner was tied to HTX, an exchange he owns and which maintains highly questionable reserves.
The request for this extension of the stay in this SEC case further notes that, “The Parties expect to resume discussions regarding a final resolution of this matter after the shutdown ends.”
The shutdown is a result of Congress’s failure to approve a budget or a continuing resolution.
When it will be resolved is unclear, and will depend on Congress returning to session and successfully passing a budget or continuing resolution to once again approve appropriations from the Treasury.
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