The SEC has dropped its 2-year lawsuit against Binance and founder Changpeng Zhao after accusing the exchange of illegal activities and mishandling user funds.
The dismissal is 'With Prejudice', preventing the SEC from refiling the lawsuit or seeking reimbursement for legal fees from Binance and CZ.
Binance's prior $4.3 billion settlement with the DOJ resulted in CZ stepping down as CEO, pleading guilty to AML violations, and retaining a significant crypto fortune.
This decision aligns with a trend of regulatory easing in 2025, as seen in closed investigations on major exchanges and a shift towards a more crypto-friendly leadership in regulatory bodies.