Tron Foundation (TRX Token) Unregistered Securities and Token Misrepresentation Case

Both parties are exchanging evidence and gathering information for the case.

S.D. New York

Court

1:20-cv-02804

Case number

06/26/2017

Class period Start

04/03/2020

Class period End

TRX Token investors filed a lawsuit against Tron Foundation for selling unregistered securities and misleading investors about the functionality and value of TRX tokens.
After revelations of plagiarism, false promises, and insider sales, TRX Tokens dropped significantly, and investors suffered losses.
TRX Token investors can join this case to be notified about potential recovery.
Case Details:

In 2017, the Tron Foundation, led by Justin Sun, launched the TRX token, promoting it as the foundation of a decentralized digital content platform. The company claimed TRX would have immediate utility and operate on a functioning blockchain network, attracting investors with promises of decentralization, speed, and scalability.

At launch, however, TRX existed only as an ERC-20 token on Ethereum, and the Tron network was not yet operational. The project quickly raised around $70 million, while emphasizing long-term adoption and high-profile partnerships. Tron heavily marketed the TRX token’s future use cases, despite it having no practical utility at the time of the sale.

As interest surged, insiders retained and sold large amounts of TRX during price spikes, while retail investors were led to believe they were supporting an active ecosystem. Over time, concerns grew over the platform’s originality, token supply management, and delays in delivering on its core promises. These factors ultimately contributed to sharp drops in token value, leaving many investors with substantial losses.

Based on these events, $TRX investors filed a lawsuit against the Tron Foundation, claiming the company:
It sold TRX as unregistered securities in violation of federal and state laws.
It misled investors about TRX’s utility, platform functionality, and decentralization.
It used plagiarized whitepapers and promotional tactics to raise funds while insiders profited.
Investors believe Tron misrepresented the project’s readiness and regulatory compliance.

Case Status

Case Discovery

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Failure to Disclose

Suspected Party

Directors,

Management

Security Type

Crypto Asset

Trade Direction

Long

Shock Event Date

04/03/2019

Filing date

04/03/2020

Judge

Vernon S. Broderick

Tron Foundation

Tron Foundation is a Singapore-based non-profit organization founded in 2017 by Justin Sun. The foundation is dedicated to promoting and supporting the development of the TRON blockchain ecosystem,...

Ticker

N/A.PRVT

Sector

Technology

Industry

Digital Assets / Blockchain

Country

Singapore