Four months ago, the U.S. SEC was still accusing Sun Yuchen of market manipulation, but now he has made a stunning transformation.
The most controversial figure in the crypto world—Sun Yuchen is about to lead his Tron platform to go public through a reverse merger. Under the stimulus of the merger news, SRM Entertainment, as the shell company, saw its stock price soar by 647% overnight.
It is noteworthy that this transaction is being handled by Dominari Securities, an investment bank closely connected to the Trump family, and Eric Trump, the second son of Trump, is expected to take a position in the new company.
01 Sun Yuchen is going public, Eric Trump will join:
After prominently attending Trump's crypto dinner, crypto tycoon Sun Yuchen's digital asset platform Tron is set to go public through a reverse merger, with the shell company experiencing a 647% surge overnight. Interestingly, the driving force behind this is an investment bank closely related to Trump's sons.
According to a report by the Financial Times on June 16, Sun Yuchen's crypto platform Tron has reached a reverse merger agreement with Nasdaq-listed SRM Entertainment. The new entity plans to inject $210 million worth of token assets and will be renamed 'Tron Inc.'
This transaction occurred during a critical period when the U.S. Securities and Exchange Commission (SEC) paused its lawsuit against Sun Yuchen for alleged market manipulation, and it is being orchestrated by Dominari Securities, which is closely associated with the Trump family.
The driving force behind this reverse merger, Dominari Securities, is headquartered in Trump Tower, and Donald Trump Jr., Trump's eldest son, along with his second son Eric, joined its parent company Dominari Holdings' advisory board earlier this year. The company's stock price abnormal increase of 580% before the announcement had drawn regulatory scrutiny. Insider sources also revealed that Eric is expected to hold an important position in the newly established 'Tron Inc.'
It is reported that 'Tron Inc.' will adopt the strategy of MicroStrategy founder Michael Saylor, purchasing and holding Tron tokens, positioning itself as a leveraged digital asset investment tool.
According to Pengpai News, SRM also announced on June 16 that it has signed a securities purchase agreement with a private investor, which will provide $100 million in equity investment for SRM to initiate a fund management strategy for Tron coins.
02 The stunning transformation of a controversial figure:
Sun Yuchen has long been regarded as one of the most controversial figures in the cryptocurrency industry, known for his eye-catching hype tactics. In 2019, he spent $4.6 million to win a charity auction to have lunch with Warren Buffett but ultimately stood up the 'Oracle of Omaha.'
Last year, he spent $6.2 million to buy a banana art piece taped to a wall, then proceeded to eat it in front of the world's media.
Recently, he made a high-profile appearance at Trump's dinner. An article from Wall Street Insight mentioned that the dinner invited 220 of the largest holders of 'Trump Coin,' with Sun Yuchen, as the 'top brother,' becoming the focus of the event.
Sun Yuchen not only interacted closely with Trump at the dinner but was also formally invited to the stage, wearing a $100,000 Trump-branded gold watch gifted by Trump, stealing the spotlight.
Just two years ago, Sun Yuchen was still a key target of U.S. regulators. In 2023, the U.S. Securities and Exchange Commission accused Sun Yuchen and his three companies (including Tron) of selling unregistered securities and manipulating the market. However, after Trump signaled a relaxed regulatory attitude towards the cryptocurrency industry, the SEC and Sun Yuchen jointly submitted a motion to the court in February to pause the lawsuit to explore potential settlement options. The U.S. then suspended its investigation into Sun Yuchen and related companies.
