- The U.S. Securities and Exchange Commission (SEC) and Binance have jointly requested another pause in their legal battle.
- The pause is to allow for ongoing discussions and potential resolution of the case.
The U.S. Securities and Exchange Commission (SEC) and Binance are seeking a 60-day pause in their nearly two-year-long legal dispute. A motion was filed on April 11 in the U.S. District Court for the District of Columbia, indicating that productive discussions are occurring between both parties, potentially leading to changes or a resolution in the case.
The SEC needs the extension to seek internal approval for a possible resolution, while Binance agreed, citing the benefit to judicial efficiency. “Since the Court stayed this case, the Parties have been in productive discussions, including discussions concerning how the efforts of the crypto task force may impact the SEC’s claims,” the file stated.
Key Developments in the SEC vs. Binance Case
This marks the second time this year that both sides have jointly requested a two-month extension. The prior pause was granted in February, not long after Gary Gensler, known for his tough stance on crypto, stepped down as SEC Chair. Mark Uyeda, considered more crypto-friendly, has since taken over as acting chair. Following Gensler’s departure, the SEC formed a Crypto Task Force to clarify regulatory guidance and better allocate enforcement resources.
The SEC’s case against Binance, initiated in June 2023, includes 13 charges related to the alleged unregistered sales of tokens like BNB and BUSD, the operation of investment products such as Simple Earn and BNB Vault, and its staking program. Binance and its former CEO, Changpeng “CZ” Zhao, have denied all allegations.
Recently, the SEC has withdrawn several high-profile enforcement actions against companies like Coinbase, Kraken, Gemini, Robinhood, and ConsenSys, suggesting a possible shift in regulatory approach under the new leadership.
In other news, a report by The Wall Street Journal, reported by Watcher.Guru on X claimed that Changpeng Zhao had agreed to testify against Tron founder Justin Sun as part of his plea deal with the Department of Justice. “Binance Founder CZ gave evidence against Justin Sun as part of DOJ plea deal, WSJ claims.” CZ dismissed the claim on X, emphasizing that those who become government witnesses typically do not go to prison.
WSJ is really TRYING here. They seem to have forgotten who went to prison and who didn’t. People who become gov witnesses don’t go to prison. They are protected. I heard someone paid WSJ employees to smear me,
he stated.
Zhao was sentenced in April 2024 to four months in prison for Anti-Money Laundering violations and was released in September.
Additionally, a Nigerian court has postponed a tax evasion case against Binance to April 30. The postponement came after Binance, led by its legal counsel Chukwuka Ikwuazom challenged the legality of how the court documents were served, arguing that the Federal Inland Revenue Service (FIRS) did not obtain the necessary court approval to serve documents outside of Nigeria, given that Binance is registered in the Cayman Islands and lacks a physical office in Nigeria.