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SEC DROPS BOMBSHELL CASE AGAINST BINANCE! SHOCKING TWIST REVEALED!

  
May 29, 2025


  
  

    

      
      

    

  




  



        


U.S. Securities and Exchange Commission Litigation Release No. 26316, dated May 29, 2025.


The SEC has dismissed its civil enforcement action against Binance entities and its founder, Changpeng Zhao. This dismissal is with prejudice, meaning the SEC cannot refile the same claims. The decision was made as a policy matter and does not reflect the SEC's stance on other ongoing litigation.




In Plain English
Imagine the SEC was like a referee in a game, and they accused a team (Binance) of breaking some rules. The SEC decided to stop the game and drop all the accusations against that team. They won't be able to bring up those same accusations again.
Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.


How the Alleged Scheme Worked
  1. SEC Initiates Enforcement Action The Securities and Exchange Commission (SEC) filed a civil enforcement action against Binance Holdings Limited, BAM Trading Services Inc., BAM Management US Holdings Inc., and its founder Changpeng Zhao. This action was filed in the U.S. District Court for the District of Columbia on June 5, 2023, under Case No. 1:23-cv-01599.
  2. SEC Seeks Dismissal On May 29, 2025, the SEC filed a joint stipulation with the defendants to dismiss the ongoing civil enforcement action. This joint filing indicates an agreement between the parties to conclude the litigation.
  3. Dismissal Granted The court approved the joint stipulation, leading to the dismissal of the SEC's claims against Binance entities and Changpeng Zhao. The dismissal is 'with prejudice,' meaning the SEC cannot bring the same claims again.
  4. SEC Policy Rationale The SEC stated that in the exercise of its discretion and as a policy matter, it determined that the dismissal of this specific action is appropriate. This suggests the decision was based on broader regulatory strategy rather than the merits of the original claims.
  5. No Impact on Other Cases The joint stipulation explicitly notes that the Commission's decision to seek dismissal does not necessarily reflect its position on any other litigation or proceeding. This clarifies that the dismissal is specific to this case and its unique circumstances.


The Enforcement Action
The U.S. Securities and Exchange Commission (SEC) announced the dismissal, with prejudice, of its civil enforcement action against Binance Holdings Limited, BAM Trading Services Inc., BAM Management US Holdings Inc., and founder Changpeng Zhao. The case, filed on June 5, 2023, in the U.S. District Court for the District of Columbia (Case No. 1:23-cv-01599), was dismissed via a joint stipulation filed on May 29, 2025. The SEC cited its discretion and policy considerations for the dismissal, clarifying it does not impact other ongoing litigation.


Original SEC litigation release ↗ · Browse all cases