Democrats Challenge SEC Over Pause of Justin Sun Fraud Case After $75 Million Trump-Linked Investment

On January 15, Representative Maxine Waters sent a letter accusing the SEC of operating a pay-to-play scheme in its crypto enforcement strategy, focusing on the paused civil fraud case against Tron founder Justin Sun. The letter highlights Sun's $75 million investment in Trump family venture World Liberty Financial, his status as the largest holder of Trump's memecoin, and subsequent SEC moves to stay his case and drop other major actions against leading exchanges. Waters argues that these decisions create the appearance that political donations and financial ties to the Trump family may have influenced regulatory outcomes and calls on the SEC to either resume litigation or secure a settlement that reflects the strength of its original complaint.