U.S. Senator Criticizes SEC for $10 Million Settlement with Justin Sun, Accusing Trump Administration of Favoring Crypto Allies

Gate News reports that on March 6, U.S. Senator Elizabeth Warren publicly criticized the U.S. Securities and Exchange Commission (SEC) for reaching a $10 million settlement with Justin Sun and withdrawing related charges, claiming that the regulatory agency is becoming a “watchdog” for Trump and his crypto allies. The settlement involves a case related to Rainberry, stemming from a lawsuit filed by the SEC in 2023 against Justin Sun and his company, accusing them of illegally issuing digital assets, manipulating trading volume, and hiding payments made to celebrities for promotion. Justin Sun neither admitted nor denied the allegations in the agreement. 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 approximately $18 million of TRUMP Meme Coins, and emphasized that any crypto legislation advanced by Congress must prevent the president from “profiting through crypto businesses.” Since Trump’s return to the White House in 2025, the SEC has paused or withdrawn several crypto industry cases, including some enforcement actions against certain CEXs and crypto companies, indicating a clear shift in regulatory attitude. Justin Sun said the settlement concludes the case and that he will continue to promote crypto innovation and work with regulators to develop industry rules.