The U.S. Securities and Exchange Commission (SEC) has officially dismissed its lawsuit against Binance, the world's largest cryptocurrency exchange, and its founder Changpeng Zhao (CZ). The legal action, which was initially filed in June 2023, accused Binance and CZ of violating securities laws by allegedly offering unregistered securities, failing to prevent U.S. users from accessing the platform, and commingling customer funds.
The dismissal follows a joint stipulation filed by both parties and a federal judge placing the case on hold earlier this year. Binance.US, the American subsidiary of Binance, welcomed the decision, emphasizing that the outcome confirms the company never violated U.S. securities laws. The exchange stated it will now focus on growth initiatives including expanding access to cryptocurrency, rebuilding trust, and restoring impacted relationships.
Market reaction to the news has been muted, with Binance's native token BNB experiencing only a minor price increase of 0.4% over the past hour, likely due to the dismissal being anticipated and already priced in by investors. This lawsuit dismissal mirrors earlier SEC actions that also dismissed similar cases against other major crypto exchanges such as Kraken and Coinbase earlier in the year.