Written By Bitcoin and other cryptocurrencies have taken a hit after the US Securities and Exchange Commission (SEC) charged Justin Sun, the founder of Tron, with violating securities laws. The SEC alleges that Sun offered and sold Tron and BitTorrent tokens as investments through unregistered “bounty programs,” while paying celebrities to promote the offerings without disclosing their compensation.
Following the news, Binance US announced that it would delist Tron and BitTorrent tokens, causing their prices to plummet. Tron’s price dropped by over 20%, while BitTorrent’s price fell by nearly 30%. Bitcoin also retreated, falling below $35,000 for the first time since January.
The charges against Sun highlight the regulatory risks facing the cryptocurrency industry, which has long operated in a largely unregulated environment. The SEC has been cracking down on cryptocurrency offerings in recent years, arguing that many of them are securities that must be registered with the agency.
As the cryptocurrency market continues to face regulatory scrutiny, investors are likely to become more cautious, which could lead to further price drops. However, some analysts argue that the long-term outlook for cryptocurrencies remains positive, as more institutional investors enter the market and governments around the world explore the potential of digital currencies.
In the meantime, the SEC’s charges against Sun and the delisting of Tron and BitTorrent tokens serve as a reminder that the cryptocurrency industry is still in its early stages, and that investors should proceed with caution.
