- The SEC has officially dismissed its lawsuit against Binance and founder CZ, ending a high-profile case that accused them of securities violations and fund mismanagement.
- This marks another major reversal under the Trump administration, which has recently backed off enforcement-heavy crypto actions, including against Uniswap and Coinbase.
- Binance previously settled separate criminal charges with the DOJ for US$4.3B, while CZ served four months in prison and stepped down as CEO.
The US Securities and Exchange Commission (SEC) is walking away from its lawsuit against Binance, marking one of the regulator’s most significant reversals in its campaign against the crypto industry.
That’s right. The man who founded the largest crypto exchange in history, made billions, got charged with violating anti-money laundering laws, and as a consequence served just four months in jail (and even walked out with even more money), is now seeing how the SEC is dropping the lawsuit.
It’s the latest in a series of regulatory retreats under the Trump administration, which has moved quickly to dismantle much of the enforcement-heavy approach championed by Gensler from 2021 to 2024. This includes ending its probe against Uniswap and closing up its investigation into Coinbase.
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SEC Drops Another Lawsuit
The case was filed in June 2023 and accused Binance, Zhao, and its U.S. affiliate BAM Trading of violating securities laws, misusing customer funds, misleading investors, and whatnot. The action had been on ice since February of this year, with another pause granted in April, fueling speculation that the agency would abandon the case like it did with many other exchanges.
Good to recall that Binance and Zhao resolved a separate criminal investigation with the US Department of Justice in November 2023, in which they agreed to pay a US$4.3B (AU$6.67B) fine. As part of the deal, Zhao stepped down as CEO and pleaded guilty to a money laundering violation.
Moving on, the exchange celebrated the dismissal on X, calling it a “huge win for crypto” and explicitly thanking President Donald Trump and the new SEC chair Paul Atkins for “pushing back” against Gensler’s infamous regulation by enforcement approach:
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.
BinanceBut Zhao was a bit more… blunt, so to speak, with his reaction. He posted this on X:
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