On May 29, 2025, the Securities and Exchange Commission announced that it dismissed an ongoing civil enforcement action against certain Binance entities and its founder Chengpeng Zhao that was filed on June 5, 2023. The case involves allegations that the company violated U.S. federal securities laws by, among other things, operating as an unregistered exchange, broker and clearing agency and engaging in the unregistered offer and sale of crypto assets. According to the SEC, the civil enforcement action against Binance Holdings Limited, BAM Trading Services Inc., BAM Management US Holding Inc., and Zhao was dismissed with prejudice pursuant to a joint stipulation signed by the parties.
The dismissal follows the SEC’s launch of a crypto task force, in January 2025, that was established to help the Commission develop a regulatory framework for crypto assets. According to the joint stipulation, the case was stayed in February 2025 because of the possible impact that the task force’s work might have on the case and its potential resolution. The Commission indicated that the case was dismissed “in the exercise of its discretion and as a policy matter” and emphasized that the dismissal does not reflect the SEC’s position regarding any other litigation or proceeding.
SEC Press Release | Joint Stipulation to Dismissal and Releases