Four months ago, the U.S. SEC was still accusing Sun Yuchen of market manipulation, but now he has made a stunning turnaround.
The most controversial figure in the cryptocurrency 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.
Notably, this transaction is operated by Dominari Securities, an investment bank closely related 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, and Eric Trump will join:
After prominently attending Trump's cryptocurrency dinner, crypto billionaire Sun Yuchen's digital asset platform Tron is set to go public through a reverse merger, with the shell company surging 647% overnight. Interestingly, the operator 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 cryptocurrency 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 time when the SEC had suspended its lawsuit against Sun Yuchen for alleged market manipulation, and it was operated by Dominari Securities, closely associated with the Trump family.
The operator of 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 the advisory board of its parent company Dominari Holdings in February this year. The company's unusual stock price increase of 580% before the announcement had raised regulatory concerns. Sources also revealed that Eric is expected to take 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 and positioning itself as a leveraged digital asset investment tool.
According to a report from The Paper, SRM also stated in an announcement released on June 16 that the company has signed a securities purchase agreement with a private investor, in which SRM will use a $100 million equity investment to initiate a fund management strategy for Tron.
02 The glamorous turnaround 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 promotional tactics. In 2019, he bought a charity auction lunch with Warren Buffett for $4.6 million but ultimately stood up the stock god.
Last year, he spent $6.2 million to buy a banana art piece stuck to a wall, which he then ate in front of the world's media.
Recently, he also prominently attended Trump's dinner. An article from Wall Street Insight mentioned that the dinner invited 220 of the largest holders of 'Trump coins,' with Sun Yuchen, as the 'top brother,' becoming the focus of the event.
Sun Yuchen not only interacted closely with Trump during the dinner but was also ceremoniously 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 focus of U.S. regulatory agencies. In 2023, the SEC charged Sun Yuchen and his three companies (including Tron) with selling unregistered securities and manipulating the market. However, when Trump signaled a more lenient regulatory approach towards the cryptocurrency industry, the SEC and Sun Yuchen jointly filed a motion to the court in February to suspend the lawsuit in order to explore potential settlement options. Subsequently, the U.S. suspended its investigation into Sun Yuchen and related companies.
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