SEC Says Its Binance Case Should Advance Despite DOJ Settlement

Chris Strohm, Bloomberg News

Changpeng Zhao, chief executive officer of Binance Holdings Ltd., center, exits federal court in Seattle, Washington, US, on Tuesday, Nov. 21, 2023. Zhao pleaded guilty to anti-money laundering violations and agreed to pay a $50 million fine Tuesday under a sweeping deal worked out with the Justice Department designed to keep the company operating. Photographer: Chloe Collyer/Bloomberg , Bloomberg

(Bloomberg) -- The Securities and Exchange Commission says Binance Holdings Ltd.’s recent $4.3 billion settlement with the Justice Department and other US authorities bolsters its own case against the world’s biggest crypto exchange.

Despite not being part of the agreement, the SEC argued on Friday that the federal court in Washington hearing its case should weigh admissions by Binance and the firm’s former chief executive, Changpeng Zhao, in the Nov. 21 settlement. The firm and Zhao have asked the court to dismiss the SEC’s lawsuit.

Read More: Crypto Exchange Binance, CEO Zhao Ask Court to Dismiss SEC Suit

Representatives for Binance and a defense lawyer for Zhao didn’t immediately respond to emailed requests for comment.

Binance’s record settlement with the US government wrapped up yearslong investigations by Justice, multiple arms of the Treasury Department and the Commodity Futures Trading Commission. The agreement didn’t include the SEC, which sued the exchange and Zhao in June for allegedly mishandling customer funds, misleading investors and regulators, and breaking securities rules.

The case is SEC v. Binance, 23-cv-01599, US District Court, District of Columbia (Washington, DC).