SEC and Binance Seek Another Two-Month Pause in Ongoing Legal Battle
The U.S. Securities and Exchange Commission (SEC) and cryptocurrency exchange Binance have jointly requested a federal judge to grant a further 60-day pause in their nearly two-year-long legal dispute. The motion, filed on April 11 in the U.S. District Court for the District of Columbia, highlights ongoing discussions between both parties that could lead to changes in the scope or resolution of the case. “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 filing stated.
SEC Seeks More Time to Finalize Binance Case Resolution
The SEC requested the extension to continue seeking internal approval for a possible resolution, and Binance agreed, citing the benefit to judicial efficiency. This marks the second time this year that both sides have jointly asked for a two-month extension. The prior pause was granted in February, shortly after SEC Chair Gary Gensler, known for his tough stance on crypto, resigned. Commissioner Mark Uyeda, considered more crypto-friendly, has since stepped in as acting chair. The formation of the SEC’s Crypto Task Force followed Gensler’s departure, with the group aiming to clarify regulatory guidance and better allocate enforcement resources. The SEC’s case against Binance began in June 2023 and includes 13 charges. These involve alleged unregistered sales of its BNB and BUSD tokens, the operation of investment products like Simple Earn and BNB Vault, and its staking program. Binance and its former CEO, Changpeng “CZ” Zhao, have denied the allegations. The latest filing comes as the SEC has recently withdrawn several high-profile enforcement actions, including cases against Coinbase, Kraken, Gemini, Robinhood, and ConsenSys, signaling a shift in regulatory tone under the new leadership.
CZ Linked to DOJ Case Against Justin Sun in New WSJ Report
Meanwhile, a separate controversy involving CZ has also resurfaced. On April 11, The Wall Street Journal reported that Zhao had allegedly agreed to testify against Tron founder Justin Sun as part of his plea deal with the Department of Justice. CZ dismissed the claim, posting on X: “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.”
Zhao was sentenced in April 2024 to four months in prison for Anti-Money Laundering violations. He was released in September, maintaining his position as the wealthiest individual to ever serve a U.S. prison sentence, with a net worth of $60 billion at the time. Last week, a Nigerian court postponed a high-profile tax evasion case against Binance to April 30 after the crypto exchange challenged the legality behind how it was served court documents. Binance’s legal counsel, Chukwuka Ikwuazom, said the Federal Inland Revenue Service (FIRS) did not get court approval to serve documents outside Nigeria. He argued that the Feb. 11 order allowing substituted service was invalid. Binance is registered in the Cayman Islands and does not have a physical office in Nigeria.