The recent high-profile deal between Binance and the U.S. Department of Justice has not caused the Securities and Exchange Commission (SEC) to drop its case against the cryptocurrency exchange. The regulator continues to pursue its case against Binance in court, with further hearings scheduled for February 2024.
In addition, the SEC intends to use the confessions of Binance and CEO Changpeng Zhao as evidence of their guilt and is urging the court to consider those confessions.
The SEC is not a party to the November 21 deal with Binance, which turmoiled the crypto industry and shook the position of the largest cryptocurrency exchange. On Dec. 8, the SEC asked a federal court to use the pleas of Binance and its former CEO Changpeng Zhao, Bloomberg reported.
In response, Binance and Changpeng Zhao have already asked the court to dismiss the SEC's claims and dismiss the lawsuit.
Binance's settlement with U.S. authorities comes after extensive investigations and proceedings by the DOJ, several divisions of the Treasury Department, and the Commodity Futures Trading Commission (CFTC). The SEC was not a party to the deal, although it sued Binance and CZ in June for fraud and misuse of client funds, as well as securities law violations.
As part of that settlement, Binance CEO Changpeng Zhao pleaded guilty to violating the Bank Secrecy Act and will have to pay a $50 million personal fine; he also resigned as the head of the exchange. At the same time, not only will the charges against him not be dropped, but he will be barred from leaving the United States by court order. His court hearing will take place in February 2024, so prosecutors have barred him from returning to the UAE, citing concerns about flight risk.
These events have affected Binance and its dominance among the industry's big names, shifting the focus to Coinbase and other exchanges. Binance is rapidly losing market share, with the exchange controlling just 32% of spot cryptocurrency trading and 50% of derivatives trading last month, down from 55% and 62%, respectively, in January.
Earlier, Binance withdrew its license application in the United Arab Emirates.
