US senators criticize SEC's $10 million settlement with Justin Sun, accusing the Trump administration of "favoring crypto allies"

BlockBeats News, March 6, U.S. Senator Elizabeth Warren publicly criticized the U.S. Securities and Exchange Commission for reaching a $10 million settlement agreement with Justin Sun and dropping related charges, stating that the regulatory agency is becoming a "watchdog" for Donald Trump and his crypto allies.

According to reports, the settlement involves a case related to Rainberry, stemming from a lawsuit filed by the SEC against Justin Sun and his companies in 2023, accusing them of illegally issuing digital assets, manipulating trading volumes, and concealing payments to celebrities for promotional activities. In the agreement, Justin Sun neither admitted nor denied the related allegations.

Warren stated that Justin Sun had invested about $90 million in crypto projects related to the Trump family, including purchasing at least $75 million worth of WLFI tokens and about $18 million in TRUMP Meme coins. She emphasized that any crypto legislation advanced by Congress must prevent the president from "profiting through crypto businesses."

According to reports, since Trump's return to the White House in 2025, the SEC has suspended or dropped several cases in the crypto industry, including certain enforcement actions against an exchange, Ripple Labs, and another exchange, indicating a clear shift in regulatory attitude. Justin Sun stated that the settlement brings the case to a close, and that he will continue to promote crypto innovation and work with regulators to develop industry rules in the future.