The US Securities and Exchange Commission (SEC) has decided to drop its lawsuit against Binance, as reported by Reuters on Friday.
In a joint filing on May 29, the SEC, Binance, and its co-founder Changpeng Zhao asked a federal court in Washington, D.C., to dismiss the case, which was initially filed in June 2023.
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The filing cited the SEC's Crypto Task Force as a factor in the potential resolution and stated that dismissing the lawsuit was a matter of policy discretion.
The motion requests a dismissal with prejudice, which would prevent the SEC from refiling the case. The lawsuit had been suspended twice this year, indicating a possible withdrawal.
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The SEC had accused Binance, Zhao, and its US subsidiary, BAM Trading, of securities violations, mishandling of customer funds, and deceiving investors.