Tron Prepares to Go Public After US Suspends Investigation of Justin Sun

The Financial Times reported that Tron, a popular blockchain platform founded by Justin Sun, is preparing to go public in the US through a $210 million reverse merger with SRM Entertainment, a Nasdaq-listed company.

6/16/20254 min read

Justin Sun's Case Summary

Tron is a decentralized blockchain that uses a proof-of-stake consensus mechanism and supports smart contracts and decentralized applications (dApps). Founded in 2017 by Justin Sun, Tron has grown into a large ecosystem with over 308 million users and 10.4 billion transactions, according to data from Business Insider.

Tron’s native token, TRX, currently has a market capitalization of around $26.41 billion, with its price up 2.17% over the past 24 hours to $0.2785 at press time. However, Tron has also faced its fair share of controversy, including accusations from the Wall Street Journal that it is a “popular channel for crypto criminals to move money” and is responsible for “more than half of all illegal cryptocurrency activity” in 2024.

In March 2023, the SEC sued Sun and his companies (Tron Foundation, BitTorrent Foundation, and Rainberry) for allegedly selling unregistered securities related to TRX and BitTorrent (BTT) tokens, as well as manipulating the price of TRX through wash trading.

The SEC alleges that Sun made $31 million in illegal profits through hundreds of thousands of TRX transactions between two accounts he controlled. In addition, Sun is accused of paying celebrities such as Lindsay Lohan, Jake Paul, and Akon to promote the token without disclosing that they were paid, in violation of US securities laws. However, in February 2025, the SEC and Sun asked the court to halt the lawsuit to negotiate a settlement, and the investigation has since been “paused.”

According to the Financial Times, Tron will merge with SRM Entertainment in a deal arranged by Dominari Securities, a New York boutique investment bank with ties to Donald Trump Jr. and Eric Trump. The new company, Tron Inc., will operate as a holding company and is expected to own a large amount of TRX tokens, similar to the strategy of MicroStrategy, which became a “leveraged Bitcoin vehicle” under the leadership of Michael Saylor. The deal would allow Tron to list on Nasdaq without conducting a traditional IPO, a common path for crypto companies looking to access public capital markets.

What happened to Tron?

The Trump administration, with its pledge to make the US a “cryptocurrency capital” and the appointment of Paul Atkins as SEC chairman, has created a crypto-friendly environment. The SEC suspended its investigation into Sun shortly after Trump took office (1/2025).

Listing on Nasdaq via a reverse merger gives Tron access to traditional capital markets, attracting institutional investors. Tron Inc.’s TRX holding strategy, similar to MicroStrategy’s with Bitcoin, positions the company as a “cryptocurrency investment vehicle,” improving its image after allegations of illegal activity.

The listing announcement sent TRX price up 2.17%, trading volume up 230.8% to $1.02 billion in 24 hours. Tron Inc.'s TRX accumulation strategy created buying pressure, benefiting Sun, who held 45% of the initial TRX supply.

Sun, known for his media stunts like buying $15 million worth of NFTs, sees the listing as a chance to raise his profile. His big investments in WLFI and $TRUMP, along with his relationship with Trump, have helped him establish himself as a strategic partner, opening up business and political opportunities.

Compare with Angel Studios event

Tron's event has some similarities and differences with Angel Studios' purchase of 300 BTC and implementation of the Bitcoin treasury strategy:

  • Digital Asset Strategy: Both companies use cryptocurrencies as part of their long-term financial strategies. Angel Studios accumulates Bitcoin to protect the value of its assets, while Tron Inc. plans to hold TRX to increase the value of the company and its tokens.

  • Boosting credibility: Both leverage cryptocurrencies to attract attention from the investment community and improve their corporate image.

  • Institutionalization Trend: Both are signs of cryptocurrency adoption in industries beyond finance, with Angel Studios in entertainment and Tron in blockchain technology.

  • Business model: Angel Studios is an independent film studio that uses Bitcoin as a reserve asset, while Tron is a blockchain platform with the TRX token at the core of its ecosystem. Tron's listing aims to further integrate into the financial market, while Angel Studios focuses on asset protection.

  • Legal risks: Tron faces more serious legal issues, including allegations of fraud and money laundering, while Angel Studios is primarily exposed to Bitcoin price volatility. The SEC’s suspension of Sun’s investigation has a clear political overtone that was not seen in Angel Studios’ case.

  • Political Connections: Tron has direct ties to the Trump family, with Eric Trump taking a leadership role and Dominari Securities arranging the deal. Angel Studios shows no signs of similar political connections.

Evaluation and Conclusion

Tron’s reverse merger with SRM Entertainment and the SEC’s suspension of its investigation into Justin Sun are significant events that reflect the complex intersection of cryptocurrency, traditional finance, and politics. While Angel Studios has chosen Bitcoin as a reserve asset to protect its value, Tron is aiming to integrate more deeply into public capital markets, leveraging its TRX token for growth. However, its relationship with the Trump family and Sun’s history of controversy put Tron in a risky position, with both great opportunity and significant risk.

This event not only solidifies Justin Sun’s position in the cryptocurrency industry but also highlights the institutionalization of blockchain. However, it also raises questions about the sustainability and ethics of strategies that rely on political influence. As the cryptocurrency market continues to grow, investors and regulators will need to closely monitor what happens next from Tron and similar projects.

Once again we give our opinion on potential projects in the crypto market. This is not investment advice, consider your portfolio. Disclaimer: The views expressed in this article are solely those of the author and do not represent the platform in any way. This article is not intended to be a guide to making investment decisions.

Compiled and analyzed by HCCVenture

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