The US Securities and Exchange Commission (SEC) has formally ended its lawsuit against Binance, the world’s largest cryptocurrency exchange, and its founder Changpeng Zhao, bringing to a close a long-running legal battle over alleged securities violations.
In a joint filing dated May 29, the SEC and Binance agreed to dismiss the case with prejudice, meaning the charges cannot be refiled. The regulator clarified the decision was discretionary and reflected a change in enforcement priorities, not a comment on the merits of the case.
The litigation began in June 2023, when the SEC accused Binance, its US entity BAM Trading, and Zhao of 13 civil violations. These included operating an unregistered securities exchange, misusing customer funds, and failing to register crypto offerings. At the time, SEC Chair Gary Gensler said the platform had “misled investors” and attempted to evade US regulation.
Binance later settled separate charges with the US Department of Justice, agreeing in November 2023 to pay a $4.3 billion penalty. Zhao also pleaded guilty to anti-money laundering breaches and served four months in prison. He stepped down as CEO as part of the deal.
Regulatory mood shifts in Washington
The SEC’s decision to drop the case follows a broader policy change under Paul Atkins, who became SEC Chair earlier this year following the election of President Donald Trump.
The agency has since paused several high-profile crypto cases, citing a need to focus on regulatory clarity rather than litigation.
In a statement issued following the dismissal, Binance described the outcome as “a turning point” and credited the change in leadership at the SEC for adopting “a more constructive approach.”
Global scrutiny continues
Despite the end of the US case, Binance remains under investigation in other jurisdictions. French authorities are probing the exchange for alleged money laundering and unauthorised operations.
In Nigeria, local regulators have questioned the firm’s role in capital outflows and compliance with local law.
These ongoing challenges come as Binance seeks to rebuild trust following a period of intense scrutiny. Its global market share has fallen from more than 60% in 2022 to just over 40% in early 2025, according to Kaiko, a crypto market data provider.
