SEC Drops Case Against Binance, Crypto Scores a Win

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SEC Drops Case Against Binance, Crypto Scores a Win

Written by Aaron S.,

Editor-In-Chief

Last Updated: May 30, 2025

Key Takeaways

The SEC and Binance jointly asked a federal court to dismiss the lawsuit permanently, blocking any future refiling of the same charges;
The SEC originally sued Binance in 2023, accusing it of violating securities laws and misleading users about key platform practices;
Binance called the dismissal a "huge win for crypto" and credited Trump and SEC Chair Atkins for pushing back on strict enforcement actions.

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SEC Drops Case Against Binance, Crypto Scores a Win

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The US Securities and Exchange Commission (SEC) has taken steps to close its lawsuit against Binance $7.01B and its founder, Changpeng "CZ" Zhao.

On May 29, both parties filed a joint request with a federal court in Washington, DC, asking for the case to be dismissed permanently, which would prevent the same charges from being brought again.

The SEC had first filed the complaint in June 2023, which alleged that Binance and its US partner, BAM Trading, had violated securities laws.

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The agency said the exchange had mixed customer funds, failed to block US users from accessing the main platform, and gave misleading information about its operations.

The recent court filing mentioned the SEC’s Crypto Task Force, which suggests that the unit could help the agency handle similar cases in the future. The SEC explained that dropping the lawsuit was the right decision based on internal policy decisions.

The case had already been put on hold twice, once in February and again in April, as the agency reconsidered its legal approach.

Following the latest court filing, Binance shared in a May 29 post on X that the decision was a "huge win for crypto". The exchange also thanked President Donald Trump and SEC Chair Paul Atkins for opposing what it described as enforcement-based regulation.

On May 6, Zhao confirmed on the Farokh Radio podcast that he had requested a pardon from President Trump. What did he say? Read the full story.