Federal regulators abandoned their civil case against Binance on Thursday, ending a nearly two-year legal battle with the world’s largest cryptocurrency exchange in a major victory for the digital asset industry.
Lawyers representing the Securities and Exchange Commission, Binance, and founder Changpeng Zhao jointly requested the case dismissal in US District Court. The dismissal prevents regulators from pursuing the same allegations again.
Regulators filed the original case in June 2023, alleging Binance illegally served American customers while inflating trading volumes and mishandling customer funds. The SEC also claimed the exchange facilitated trading in digital tokens that should have been registered as securities.
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“Today’s news is a major milestone for our company,” Binance.US said in a statement, adding the dismissal confirms the company “did not violate US securities laws.”
The SEC said it was dismissing the case “in the exercise of its discretion and as a policy matter.”
The move continues the Trump administration’s rollback of crypto enforcement. The SEC has dropped more than a dozen similar cases since President Donald Trump took office in January.
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The civil case is separate from Binance’s $4.3 billion criminal settlement in 2023 for violating anti-money laundering laws. Zhao served four months in prison and was released in September.
Binance still faces a class action lawsuit from investors who claim the exchange sold them unregistered tokens that lost value. The Supreme Court in January declined to hear Binance’s appeal to dismiss that case.
The exchange recently announced a $2 billion investment from an Emirati state fund, paid in a stablecoin linked to Trump’s family crypto venture.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
