US SEC drops lawsuit against Binance, founder Zhao

The US Securities and Exchange Commission has officially dismissed its lawsuit against Binance and its founder, Changpeng Zhao.

Filed in 2023, the lawsuit was one of the major crypto cases still pending from the Biden-era SEC.

Binance and Zhao pleaded guilty in November 2023 and agreed to a US$4.3 billion settlement over US criminal and civil charges, excluding the SEC.

In February 2025, the SEC signaled it would drop the case and requested a 60-day pause.

This dismissal ends one of the SEC’s most high-profile crypto enforcement actions.

🔗 Source: Axios

🧠 Food for thought

1️⃣ Binance’s settlement represents the largest crypto enforcement resolution to date

The $4.3 billion settlement between Binance and U.S. authorities stands as a watershed moment in cryptocurrency regulation history.

The resolution included $1.8 billion in fines and $2.5 billion in forfeited property, with Binance required to submit to compliance monitoring for five years 1.

Notably, the company and CEO Changpeng Zhao admitted to serious violations, including failing to implement anti-money laundering controls and allowing transactions potentially linked to terrorist organizations 2.

The settlement’s structure, requiring significant penalties, leadership changes, and ongoing compliance monitoring, establishes a framework for how regulators may approach enforcement actions against major cryptocurrency exchanges going forward.

This case demonstrates that despite the decentralized nature of cryptocurrency, traditional financial regulations regarding money transmission and anti-money laundering laws still apply to crypto exchanges operating globally.

2️⃣ SEC enforcement activity shows significant shifts in regulatory approach

The SEC’s decision to drop the Binance case aligns with broader trends in its enforcement strategy, as the agency reported a 26% decline in total enforcement actions in fiscal year 2024—the lowest level in a decade 3.

Despite bringing 33 cryptocurrency-related enforcement actions in 2024, the SEC appears to be unwinding some of its previous legal campaigns against the crypto industry 4 5.