Crypto platform Tron strikes deal with Nasdaq-listed company
Justin Sun's crypto platform, Tron, has reached a deal with Nasdaq-listed company SRM Entertainment under which it will buy tokens, be renamed Tron Inc and have Sun join the company as an adviser, SRM said on Monday.
SRM's statement did not name the private investor whose $100 million equity investment - valued at $210 million if warrants are exercised - would be used to purchase Tron's cryptocurrency. The Financial Times reported that the funds would be injected by Tron itself and that Tron was set to go public in the U.S. via a reverse merger with SRM.
Spokespersons for Tron and SRM did not respond to requests for comment on whether the $100 million in funds were going to come from Tron itself.
SRM's statement did not say how Tron would be run in the future or whether the ownership would change as a result of the deal.
The SRM deal was organized by New York-based boutique investment bank Dominari Securities, the statement said. Two of U.S. President Donald Trump's sons, Don Jr and Eric, joined the board of Dominari Holdings, which owns Dominari Securities, in February, the company said at the time.
Dominari Securities did not immediately respond to a request for comment.
Chinese-born Sun, the founder of the Tron blockchain network, was sued by the U.S. Securities and Exchange Commission in 2023. The billionaire has close ties to Trump's World Liberty Financial crypto venture. This year he increased his investment in the project to $75 million. Sun's Tron network has also listed USD1, a stablecoin issued by World Liberty.
Those purchases, involving an entity where Trump benefits financially, have raised concerns among political opponents and ethics experts about potential conflicts of interest. The president has said he put his business interests in a trust managed by his children to avoid conflicts of interest.
A civil fraud lawsuit by the U.S. Securities and Exchange Commission against Sun has been put on hold.
SRM also designs and sells custom merchandise such as toys and souvenirs. Its shares jumped more than 300 per cent on Monday, reaching as high as $6.70, compared with Friday's close of $1.45.
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