The United States Securities and Exchange Commission (SEC) has dismissed its lawsuit against the world’s leading cryptocurrency exchange, Binance. The court filing revealed that the case began in 2023. The agency initiated legal proceedings against Binance, alleging that it offered unregistered securities. Additionally, the regulators noted that the platform mismanaged investors’ funds.
CZ Files For Case Dismissal
In response to the SEC’s enforcement action, Binance and its co-founder Changpeng Zhao (CZ) filed a motion with the U.S. District Court for the District of Columbia seeking dismissal of the complaint. According to Binance, they requested that the court drop the motion with prejudice. This means that the case is dismissed permanently, and it cannot be brought back to court.
Following the case, the securities watchdog and the crypto platform consented to procedural pauses. This action was caused by an internal discussion within the SEC’s crypto enforcement division that could lead to a voluntary dismissal of the action.
In June 2023, the agency filed a lawsuit against Binance, CZ, and its U.S. entity, BAM Trading. The SEC accused the platform of violating securities laws and improper management of client funds.
While Binance was accused of violating securities laws, in November of that year, Binance and Zhao settled with the DOJ, paying $4.3 billion and admitting to breaches of sanctions and weak anti-money laundering controls. Meanwhile, as stipulated in the agreement, Zhao resigned as CEO of Binance and pleaded guilty to money laundering. By April 2024, he was behind bars, serving a four-month sentence.
Zhao Throws a Jab at Gary Gensler
Following the latest dismissal, CZ threw shade at former SEC Chair Gary Gensler in a recent X post. Zhao shared a photo of Gensler with a digitally added clown nose, captioned boldly: “Crypto is still here.”
Crypto is still here. pic.twitter.com/W3WC1HQBpb
— CZ 🔶 BNB (@cz_binance) May 29, 2025
Meanwhile, in addition to the case dismissal, Binance recently urged the court to dismiss FTX’s $1.76 billion lawsuit filed by FTX estate. The company argued that the case lacked legal grounds and jurisdiction.
CoinTab reported that Binance’s legal representative claimed that FTX’s accusations against the exchange and its co-founder Zhao are baseless and misrepresentative. The team contends that FTX is seeking to redirect accountability for its operational failures by implicating external entities. Meanwhile, despite several lawsuits filed against Binance, the exchange has remained the leading crypto platform by market capitalization.
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Ephraim Emmanuel | April 14, 2026
