A Crypto Billionaire Who Feared Arrest in the U.S. Returns for Dinner With Trump — WSJ

By Angus Berwick, Patricia Kowsmann and Vicky Ge HuangCrypto billionaire Justin Sun for years wouldn't set foot in the U.S. for fear of arrest. The Chinese-born tycoon, facing scrutiny from U.S. authorities, even missed a chance to fly on Jeff Bezos' Blue Origin rocket despite paying $28 million for the opportunity.Now, Sun isn't just back in America. He is in suburban Washington to attend a dinner with President Trump as a VIP guest.After weeks of industry speculation, Sun confirmed in a social-media post Tuesday that he is the largest holder of the president's $TRUMP memecoin. His some $23-million stash catapults him into the exclusive circle of 25 investors who were invited to a private VIP reception with the president on Thursday. Critics say the event is among the most glaring demonstrations yet of the conflicts of interest for Trump and his family as they pursue a range of business ventures.Until Trump's election win, the 34-year-old entrepreneur was in the sights of U.S. authorities and was persona non grata in much of the U.S. crypto industry. His company Tron, which operates a blockchain network with the same name, has been a popular channel for crypto's criminal fraternity to move funds.The U.S. Treasury Department's Financial Crimes Enforcement Network wrote in a private 2023 report that Tron was "growing in popularity among illicit actors." By last year, more than half of all illegal crypto activity — some $26 billion — took place on the network, according to researcher TRM Labs, which tracks crypto transactions and works with law enforcement.Representatives for Sun have said that it is false to suggest Tron enables criminal activity and that TRM's research has created a misleading narrative about the company. Last year, though, Tron joined with TRM and another crypto company, Tether, to form a task force to tackle crypto crime.Sun faced charges from the Securities and Exchange Commission, which in 2023 accused him of fraudulently manipulating the market for Tron's TRX token. The SEC asked a court in February to pause its lawsuit.The Justice Department, meanwhile, had been investigating Sun for suspected financial crimes, people familiar with the case said. The U.S. attorney's office in Manhattan requested information from Sun back in 2021 and continued gathering evidence through at least 2023, some of the people said, causing him to avoid travel to the U.S. over concerns about a possible arrest warrant. That meant Sun, who is based in Hong Kong, had to skip the 2021 launch of Blue Origin's first crewed space flight, on which he had won a spot, the people said. (At the time, Blue Origin said Sun pulled out due to scheduling conflicts.)It couldn't be learned whether the Justice Department investigation is still ongoing.Representatives for Sun didn't return repeated calls and emails requesting comment. Spokespeople for the SEC and the U.S. attorney's office in Manhattan declined to comment. Representatives for Blue Origin didn't respond to a request for comment.Sun's fortunes took a turn after he invested $75 million in World Liberty Financial, a crypto project Trump and his sons launched last September. He was named an adviser to the venture. Later, he started buying the president's memecoin.The SEC's decision to pause its suit against Sun and Tron surprised several agency staffers who were highly confident in winning the case, people familiar with the matter said. Sun, who has called the SEC lawsuit meritless, tweeted a handshake emoji in response to the news.Sun came to the U.S. in 2011 to pursue a graduate degree from the University of Pennsylvania. He is now back on a whirlwind tour, punctuated by photo ops in front of the Hollywood sign and a visit to a store for Sam Altman's eye-scanning crypto project. On Wednesday he posted a video of himself entering the Eisenhower Executive Office Building, part of the White House complex, and mentioned he had stopped by Blue Origin's headquarters in Kent, Wash., for a tour. "Can't wait to fly," he posted on X.He separately indicated on X that he would attend Trump's gala dinner.Sun's ties with World Liberty have helped put him directly in front of Trump's family. In December, he hung out in the VIP backroom of an Abu Dhabi bitcoin conference, along with Binance founder Changpeng Zhao and Eric Trump. He handed out miniature versions of a $6 million piece of artwork he had purchased that consisted of a banana duct-taped to a wall.Earlier this month, Sun joined Eric Trump and Zach Witkoff, a co-founder of World Liberty and son of Trump diplomatic envoy Steve Witkoff, for a "fireside chat" at a conference in Dubai. "Was an honor sharing the stage with these legends," Witkoff wrote on X.HTX, a crypto exchange that Sun advises and effectively has led, was the first major trading platform to list World Liberty's newly launched stablecoin, USD1.His participation in the Trump crypto ventures has triggered concerns on Capitol Hill. In a congressional hearing Tuesday, Rep. Glenn Ivey, a Maryland Democrat, questioned the SEC's decision to pause its case against Sun. "This frankly to me smells very bad," Ivey said.A spokesperson for Sun has said that his investment decisions aren't politically motivated.Sun, whose net worth Forbes estimates at $8.5 billion, is controversial even within the crypto industry. In a December court filing, U.S. crypto exchange Coinbase Global said he was "infamous in the crypto community," citing the SEC's allegations and media reporting about his past business dealings.He adopted the title "His Excellency" in 2021 after Grenada's government appointed him as its new ambassador to the World Trade Organization. He sought the position, which he hoped would grant him diplomatic immunity, after learning about the Justice Department probe, people familiar with the matter said. Sun has said his term ended in March 2023.Authorities have repeatedly warned about Tron's alleged use by criminals and terrorist organizations. The United Nations Office on Drugs and Crime last year called Tron's blockchain a "preferred choice for crypto money launderers" in Asia.Zhao, Binance's founder, gave evidence on Sun to U.S. prosecutors as part of his 2023 plea deal for violating anti-money-laundering rules, The Wall Street Journal previously reported. A representative for Sun declined to comment at the time on "baseless allegations about legal matters."Write to Angus Berwick at [email protected], Patricia Kowsmann at [email protected] and Vicky Ge Huang at [email protected]