The Securities and Exchange Commission (SEC) on May 29 voluntarily dismissed its civil lawsuit against cryptocurrency exchange Binance, following a nearly two-year legal battle.
The SEC said dismissing the litigation—first brought in June 2023—was appropriate “in the exercise of its discretion and as a policy matter,” and that the dismissal “does not necessarily reflect the Commission’s position in any other litigation or proceeding.”
According to the filing, the parties are asking for the case to be dismissed with prejudice, meaning the SEC cannot pursue the lawsuit again.
The filing also includes provisions preventing Binance from filing a lawsuit against the SEC and its present and former officers or employees related to the litigation in the future.
A Binance spokesperson described the dismissal as “a landmark moment.”
“We’re deeply grateful to (SEC) Chairman Paul Atkins and the Trump administration for recognizing that innovation can’t thrive under regulation by enforcement,” the spokesperson said.
The Epoch Times reached out to an SEC spokesperson for comment but did not receive a response by publication time.
The agency also accused Binance and Zhao of inflating the platform’s trading volume, commingling and diverting customer assets, and misleading investors about its surveillance controls.
Binance Pleads Guilty to Anti-Money Laundering Violations
In November 2023, Binance also agreed to plead guilty to separate charges of violating federal anti-money laundering and sanctions laws through lapses in internal controls.
The platform was charged with three counts, including money laundering, conspiracy to conduct an unlicensed money-transmitting business, and violations of U.S. sanctions.
They further accused the platform of failing to report more than 100,000 suspicious transactions with designated terrorist groups, including Hamas, al-Qaeda, and ISIS.
In addition to the guilty plea, the platform agreed to pay more than $4 billion in criminal penalties.
Zhao was released from prison last September after serving a four-month sentence.
In that same month, the agency dismissed a separate enforcement case accusing Coinbase of arranging trading in at least 13 unregistered tokens.
Trump vowed during his 2024 White House run to be a “crypto president” and promised to reverse an industry crackdown implemented under the previous administration.
Following Trump’s return to office in January, the SEC has withdrawn or put on hold many cryptocurrency enforcement cases.
Reuters contributed to this report.
