The U.S. Securities and Exchange Commission (SEC) has officially withdrawn its lawsuit against global crypto exchange Binance and its founder Changpeng Zhao, according to a court filing submitted today in Washington, D.C. federal court.
The joint notice of dismissal, signed by legal representatives from both the SEC and Binance, ends a high-profile legal clash that began in 2023.
The lawsuit had accused Binance of artificially inflating trading volumes, mishandling customer funds, and misleading investors about the platform’s compliance and surveillance mechanisms.
In addition, the SEC’s complaint alleged that Binance failed to block U.S. users from accessing its international platform and unlawfully offered trading of unregistered securities, including several tokens that were later deemed securities under previous SEC guidance.
The voluntary dismissal marks a significant development in the SEC’s evolving relationship with the crypto industry. It also raises questions about the agency’s future enforcement strategy, particularly under a shifting regulatory and political landscape.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/sec-drops-lawsuit-against-binance-ends-legal-battle-over-2023-allegations/