Washington (AFP) – The US Securities and Exchange Commission (SEC) on Thursday dropped its civil lawsuit against the cryptocurrency exchange Binance and its majority shareholder, Changpeng Zhao.
“In the exercise of its discretion and as a matter of policy, the Commission deems it appropriate to dismiss this litigation,” the agency said in a court filing. The SEC added that dropping the lawsuit “does not necessarily reflect its position in any other litigation or proceeding.”
Binance, the world’s largest cryptocurrency exchange, is accused in several countries of allowing criminal organizations to launder funds through its platform. Zhao, the company’s co-founder and former CEO, pleaded guilty in late 2023 to violating anti-money-laundering requirements in the United States, serving a four-month prison sentence for it in 2024. As part of the company’s $4.3 billion settlement with US authorities, Zhao agreed to resign from his position at Binance while remaining a majority shareholder.
US President Donald Trump’s pro-crypto SEC chair Paul Atkins has dropped other cases against major cryptocurrency platforms like Coinbase and Kraken initiated under the administration of former president Joe Biden.
© 2024 AFP
