SEC Drops Charges Against Binance And Its Founder

The Securities and Exchange Commission brought charges against the crypto asset trading platform, accusing it of multiple securities law violations. Recently, a litigation update revealed that the SEC and Binance entities, along with founder Changpeng Zhao, jointly agreed to dismiss the ongoing civil enforcement case with prejudice.

The statement explained that the SEC, exercising its discretion and policy judgment, found the dismissal appropriate. It also clarified that this decision to end the litigation does not necessarily indicate the SEC’s stance on other related cases or proceedings.

Binance Celebrates Legal Victory Amid Ongoing Regulatory Challenges

Binance celebrated the outcome on social media, calling it a significant victory for the crypto community. They also thanked key figures for resisting regulation through enforcement and expressed optimism about the future of U.S. innovation.

In a blog post, Binance described the result as a major win for its customers, the business, and the digital asset sector overall. The company maintained that the SEC’s allegations were without merit, unjustified, and politically motivated.

Rather than offering regulatory clarity to help consumers safely benefit from digital assets, the SEC pursued an aggressive enforcement approach that harmed both consumers and businesses.

The blog emphasized the real damage caused when a powerful regulator, whose role is to prevent fraud and ensure fair markets, brings baseless claims against companies that have not violated laws.

Binance stated that defending against these claims consumed significant resources but expressed hope that new leadership at the SEC would bring positive change.

Earlier, the US Commodity Futures and Trading Commission had also charged Binance and two top executives with deliberately evading US law, seeking penalties and permanent bans on trading and registration.

Binance Faces Regulatory Setbacks And Leadership Changes Amid Major Settlements

At the same time, Binance tried but failed to get a license to operate in the Netherlands, so they had to leave that market. French prosecutors also started investigating the company for serious money laundering related to investments.

The SEC said Binance was involved in a big deception. When the UK’s financial regulator made new rules that companies promoting crypto must be authorized or registered, Binance hired a company to check their promotions. But it turned out that company didn’t have the right license.
Later, Binance agreed to pay over $4 billion to settle a long investigation by the US Department of Justice and other agencies.

Founder Changpeng Zhao admitted he broke anti-money laundering rules and stepped down as Chief Executive Officer. Richard Teng, who used to lead Binance’s regional markets, became the new Chief Executive Officer.

Zhao said he made mistakes and took responsibility, saying stepping down was best for the community, the company, and himself. Binance also settled charges with the Commodity Futures and Trading Commission along with the Department of Justice case.