The US Securities and Alternate Fee (SEC) voluntarily dismissed its lawsuit towards Binance yesterday (Thursday) with prejudice, that means the company can not pursue the case once more.
The regulator had sued Binance and Changpeng Zhao, its founder and former CEO, in June 2023, accusing them of artificially inflating the alternate’s buying and selling volumes. Different prices included the diversion of buyer funds and deceptive buyers in regards to the alternate’s surveillance controls.
The alternate was additionally accused of facilitating the buying and selling of cryptocurrencies that may very well be categorised as unregistered securities.
“A Landmark Second”
The dismissal got here months after the regulatory company paused the case to evaluate the affect of the crypto activity power. The official dismissal has now been finalised as a joint stipulation of dismissal—signed by the legal professionals representing the SEC, Binance, and Zhao—and was filed within the Washington D.C. federal court docket.
🚨NEW: The @SECGov and @binance have filed a joint stipulation in search of a dismissal within the company’s ongoing litigation towards the alternate. pic.twitter.com/CiNNbi6WeX
— Eleanor Terrett (@EleanorTerrett) Might 29, 2025
In keeping with the SEC, dropping the enforcement case was applicable “within the train of its discretion and as a coverage matter.” Nonetheless, the company clarified that the transfer doesn’t point out a change in its place on different cryptocurrency-related litigation.
A Binance spokesperson referred to as the dismissal “a landmark second,” including: “We’re deeply grateful to [SEC] Chairman Paul Atkins and the Trump administration for recognising that innovation can’t thrive beneath regulation by enforcement.”
Penalties and Jail
Binance and its founder beforehand additionally confronted prison prices for lapses in anti-money laundering compliance and sanctions violations. The alternate paid over $4.3 billion to settle prices introduced by the US Division of Justice, and an extra $2.85 billion to settle with the Commodity Futures Buying and selling Fee (CFTC).
Zhao pleaded responsible to one of many cash laundering prices and served 4 months in jail. He additionally stepped down as Binance CEO however stays the alternate’s majority shareholder.
Regardless of these settlements, the SEC had continued to pursue its case towards the alternate—till now.
The company’s choice to dismiss the lawsuit was not sudden, as it’s more and more positioning itself as crypto-friendly beneath the Trump administration. The SEC has additionally dropped a number of different high-profile crypto lawsuits, together with these towards Ripple and Coinbase, together with some ongoing investigations.
This text was written by Arnab Shome at www.financemagnates.com.
