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The U.S. Securities and Exchange Commission (SEC) has formally dismissed its civil enforcement action against Binance and its founder, Changpeng Zhao, marking a significant legal milestone for the embattled crypto exchange.
According to a litigation release this week, the SEC filed a joint stipulation with Binance entities and Zhao, voluntarily withdrawing the case with prejudice—a legal term meaning the case cannot be brought again.
The Commission noted that the dismissal is a discretionary decision and emphasized that it does not set a precedent for other ongoing or future enforcement actions. “The Commission’s decision to seek dismissal of this litigation does not necessarily reflect the Commission’s position on any other litigation or proceeding,” the SEC stated in its filing.
Reacting to the development, Binance hailed the outcome as a major victory for the digital asset ecosystem. In a post on X (formerly Twitter), the company wrote:
“Huge win for crypto today. The SEC’s case against us is dismissed. Thank you to Chairman Atkins & the Trump team for pushing back against regulation by enforcement. U.S. innovation is back on track – and it’s just the beginning.”
In a blog post expanding on the announcement, Binance described the dismissal as “a major win for our customers, our business, and the digital asset industry.” The platform reiterated its long-standing position that the SEC’s allegations were unfounded and politically charged.
“From the outset, we maintained that the SEC’s claims were baseless, unjustified, and politically motivated,” the blog post reads. “Rather than offering regulatory clarity to help American consumers safely engage with digital assets, the SEC pursued a strategy of aggressive enforcement that harmed both consumers and the broader industry.”
Binance also criticized the SEC’s regulatory approach, asserting that such overreach has diverted resources, disrupted operations, and shaken market confidence. However, the company expressed optimism that “new leadership at the SEC” signals a policy shift more favorable to innovation and growth.
The now-dismissed SEC case was one of several major regulatory challenges faced by Binance in recent years. In March 2023, the U.S. Commodity Futures Trading Commission (CFTC) charged Binance and top executives with “willful evasion of U.S. law,” seeking severe financial and operational penalties.
That same year, the crypto exchange also faced scrutiny in Europe. Binance was denied a Virtual Asset Service Provider (VASP) license in the Netherlands and was compelled to exit the market. In France, prosecutors opened a probe into alleged “aggravated money laundering” linked to the platform’s operations.
The SEC’s original complaint accused Binance of securities law violations and described the company as operating a sprawling “web of deception.”
Further complications arose in October 2023 when the UK Financial Conduct Authority (FCA) enforced new rules requiring crypto promotions to be authorized. Binance’s partner, Rebuildingsociety.com, was later found to be unlicensed to perform the required approvals, disrupting the company’s promotional efforts in the UK.
The most significant blow came in November 2023, when Binance agreed to a $4.3 billion settlement with the U.S. Department of Justice (DOJ), resolving a multi-agency investigation. As part of the agreement, founder Changpeng Zhao pled guilty to violating anti-money laundering laws and stepped down as CEO. Richard Teng, previously head of regional markets, was named as Zhao’s successor.
“I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself,” Zhao said in a statement on X at the time.
Although the SEC case has now been dismissed, Binance remains under regulatory observation in multiple jurisdictions. Nonetheless, the withdrawal of the SEC’s civil suit signals a notable shift in the regulatory landscape, potentially opening the door to a more constructive dialogue between crypto innovators and U.S. regulators.
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