SEC agrees to dismiss lawsuit against Binance without further charges

The US Securities and Exchange Commission (SEC) filed a joint stipulation with crypto exchange Binance on Thursday to dismiss its lawsuit against the company, its former CEO Changpeng Zhao (CZ), and its subsidiary, Binance US.

SEC and Binance agrees to end lawsuit against the exchange

The SEC, under new Chair Paul Atkins, agreed to drop its lawsuit against Binance, Binance.US, its former CEO CZ and associated companies, according to a joint stipulation filing on Thursday.

"Plaintiff Securities and Exchange Commission ("Commission") and Defendants Binance Holdings Limited, BAM Trading Services Inc., BAM Management US Holdings Inc., and Changpeng Zhao (collectively, the "Parties") respectfully submit this Joint Stipulation," the filing states.

"The parties stipulate that this litigation be dismissed with prejudice as to the conduct alleged in the Amended Complaint and without costs or fees to any parties."

This marks the end of a long-running case that dates back to 2023, when the US securities regulator slapped Binance with several charges, including operating as an unregistered exchange, failing to prevent US investors from accessing Binance.com, artificially inflating trading volume and diverting customer funds.

In February, US District Judge Amy Berman Jackson approved a joint request from the regulator and Binance to pause the case for 60 days following the establishment of the SEC's Crypto Task Force led by Commissioner Hester Peirce, which could "impact and facilitate" a resolution.

The Crypto Task Force, launched in January, aimed to develop clearer and more comprehensive regulatory frameworks for digital assets, reflecting a shift from the agency's "regulation-by-enforcement" approach under former Chair Gary Gensler.

"This outcome confirms what we have always known: that we did not violate US securities laws," wrote Binance.US in an X post on Thursday.

The resolution between both parties marks the continuation of a trend where the SEC has been dismissing litigations or investigations against digital asset companies since Gensler's resignation, with Coinbase, Ripple, Kraken and Consensys all reaching a resolution with the agency.

Binance founder CZ recently served a four-month prison sentence after pleading guilty to breaching the Bank Secrecy Act due to the failure to establish an adequate anti-money laundering program for the crypto exchange. Zhao stepped down as CEO of Binance while the exchange received a $4.3 billion fine.

The Wall Street Journal previously reported that Binance tried to make a deal with the presidential family as part of a plan to resume Binance.US operations in the country. The report also claimed that CZ had been seeking a pardon from the Trump administration.

CZ denied the claims, along with a recent report that he facilitated discussions between the Trump family's World Liberty Financial (WLFI) team and executives of the Pakistani government.