SEC Dropped the Lawsuit Against Binance After 2 Years | Crypto Work Pro
The US Securities and Exchange Commission (SEC) voluntarily dismissed its lawsuit towards Binance yesterday (Thursday) with prejudice, that means the company can not pursue the case again.
The regulator had sued Binance and Changpeng Zhao, its founder and former CEO, in June 2023, accusing them of (*2*)artificially inflating the exchange’s trading volumes. Other fees included the diversion of buyer funds and deceptive traders about the exchange’s surveillance controls.
The exchange was additionally accused of facilitating the trading of cryptocurrencies that could possibly be categorized as unregistered securities.
“A Landmark Moment”
The dismissal got here months after the regulatory company paused the case to evaluate the influence 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—was filed in the Washington D.C. federal court docket.
🚨NEW: The @SECGov and @binance have filed a joint stipulation looking for a dismissal in the company’s ongoing litigation towards the exchange. pic.twitter.com/CiNNbi6WeX
— Eleanor Terrett (@EleanorTerrett) May 29, 2025
According to the SEC, dropping the enforcement case was acceptable “in the exercise of its discretion and as a policy matter.” However, 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 moment,” including: “We’re deeply grateful to [SEC] Chairman Paul Atkins and the Trump administration for recognising that innovation can’t thrive under regulation by enforcement.”
Penalties and Prison
Binance and its founder additionally confronted prison fees beforehand for lapses in anti-money laundering compliance and sanctions violations. The exchange paid over $4.3 billion to settle fees introduced by the US Department of Justice, and a additional $2.85 billion to settle with the Commodity Futures Trading Commission (CFTC).
Zhao pleaded guilty to at least one of the money laundering fees and served 4 months in jail. He additionally stepped down as Binance CEO however stays the exchange’s majority shareholder.
Despite these settlements, the SEC had continued to pursue its case towards the exchange—till now.
The company’s choice to dismiss the lawsuit was not sudden, as it’s more and more positioning itself as crypto-friendly below 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 article was written by Arnab Shome at www.financemagnates.com.
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