US lawmakers have sent an official inquiry to the Securities and Exchange Commission (SEC), urging the regulator to investigate the activities of TRON founder Justin Sun, his alleged ties to Donald Trump’s family, and the potential impact of those ties on the crypto market, Incrypted reports.
The letter was addressed to SEC Chair Paul Atkins and the Acting Director of the Division of Corporation Finance, and was signed by Congressman Sean Casten and Senator Jeff Merkley.
Under Investigation Yet Investing in Trump-Linked Projects
According to the lawmakers, Sun has been under investigation by the US Department of Justice since 2021, and in 2023 the SEC filed a fraud lawsuit against him over activities involving the TRX token. FinCEN has also flagged the TRON network as being used by criminal groups for money laundering. Due to the risk of arrest, Sun has reportedly avoided entering the United States.
Despite this, following Donald Trump’s victory in the 2024 presidential election, Sun became the lead investor in the DeFi project World Liberty Financial (WLFI), which is allegedly tied to the Trump family. The lawmakers claim he invested at least $75 million, generating roughly $400 million in profit for Trump.
Sun also supported the launch of the TRUMP memecoin. After these investments, the SEC—by then operating under the new administration—unexpectedly dropped its lawsuit against Sun. Lawmakers called this a potential conflict of interest.
Concerns Over Market Risks
The letter notes that as of September 2025, the WLFI token has been listed on major crypto exchanges such as Coinbase and Kraken, reportedly adding about $5 billion to Trump’s net worth. Lawmakers warn that, as one of the main investors, Sun could influence WLFI’s price, posing risks to retail investors.
They have requested the SEC to respond by October 2, 2025 to several key questions, including:
- Whether SEC officials communicated with the White House or Trump family members regarding Sun’s case;
- Whether there was direct communication with Sun before the lawsuit was withdrawn;
- How many complaints about Sun’s activities have been filed and how they were addressed;
- Whether the SEC is considering banning TRON in the US.
A New Twist in the Scandal
Earlier, Arkham analysts reported that World Liberty Financial blacklisted an Ethereum address linked to Sun amid an attempted transfer of about $9 million worth of WLFI tokens.
This Congressional inquiry could mark the start of a new SEC investigation that may significantly affect both TRON’s reputation and the broader US crypto market.
Information link: incrypted.