Justin Sun's Hong Kong expansion plans threatened by U.S. SEC action

Fraud charges could hamper effort by Huobi Global to obtain license, lawyers say

Justin Sun, 32, and three of his companies face U.S. civil fraud charges accusing them of selling two unregistered crypto tokens and manipulating trade in one of them. © Getty Images

PAK YIU, Nikkei staff writer

March 27, 2023 14:09 JST

HONG KONG -- U.S. fraud charges laid against Chinese cryptocurrency entrepreneur Justin Sun could set back plans by a digital asset exchange that counts him as an adviser to obtain a license to operate in Hong Kong, securities lawyers say.

The U.S. Securities and Exchange Commission on Wednesday filed a civil suit accusing Sun and three of his wholly owned companies, including the Tron Foundation, of selling two unregistered crypto tokens and manipulating trade in one of them. Sun said the SEC complaint "lacks merit."