- The SEC moved to dismiss its Binance lawsuit on May 29, following a $4.3 billion DOJ settlement.
- This move ends accusations of unregistered assets offering, fund misuse, and deceptive U.S. investor practices.
- Trump’s $TRUMP token surged, hitting a $2.4 billion market cap.
The Securities and Exchange Commission (SEC) on Thursday filed a motion to dismiss its lawsuit against crypto exchange Binance and founder Changpeng “CZ” Zhao, according to court documents. The SEC had accused Binance of offering unregistered securities and misleading U.S. investors through deceptive practices since June 2023.
In 2023, the SEC alleged that Binance and its U.S. affiliate, Binance.US, failed to block American users from accessing the main platform, commingled customer funds, and disregarded promised controls to evade U.S. regulatory laws.
The motion, jointly filed on May 29, Binance, and Zhao requests the dismissal of the case with prejudice, preventing future re-filing. It cites ongoing efforts by the SEC’s Crypto Task Force, which may facilitate resolution and justify dropping the suit “in the exercise of its discretion and as a policy matter.”
Binance’s DOJ $4.3 Billion Settlement
Terrett announced on X that the SEC had paused the lawsuit twice in February and April indicating the crypto unit might ultimately drop the case. Binance, Zhao, and its U.S. arm BAM Trading Services were initially sued for alleged regulatory violations, customer fund mishandling, and deceptive practices.
In a related matter, Binance and Zhao settled with the Department of Justice in November 2023, paying a $4.3 billion fine. The settlement included Zhao stepping down as CEO and admitting to money laundering charges. Zhao was sentenced to four months in prison in April 2024.
The dismissal motion has been hailed by Binance as a “huge win for crypto,” with the company thanking former President Donald Trump and former Chair Paul Atkins for opposing what they viewed as regulatory overreach.
Trump Tokens Surge After SEC Shift
In February, the SEC issued new guidance clarifying that most meme coins are not considered regulatory under federal law. This policy shift has been seen as beneficial to crypto projects tied to the Trump family.
President Trump and his relatives are linked to various crypto ventures, including the $TRUMP token, which was launched just before Trump’s inauguration. The token’s market cap is around $2.4 billion, with claims that 80% of its supply is controlled by the Trump Organization and affiliated entities.
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