SEC and Binance Extend Legal Pause as CZ Denies WSJ Allegations
The US Securities and Exchange Commission (SEC) and cryptocurrency exchange Binance have requested a second 60-day pause in their nearly two-year legal battle, citing ongoing discussions and recent internal regulatory developments.
The extension comes as former Binance CEO Changpeng “CZ” Zhao publicly denied a report alleging he agreed to testify against Tron founder Justin Sun in connection with his own plea agreement with the Department of Justice.
SEC and Binance Seek Additional Two-Month Pause in Prolonged Legal Battle as Crypto Task Force Reframes Case Strategy
The US Securities and Exchange Commission (SEC) and Binance, the world’s largest cryptocurrency exchange, have jointly requested another 60-day pause in their long-running legal battle, signaling a possible shift in the regulator’s approach to crypto enforcement under new leadership and the recently formed Crypto Task Force.
According to a joint status report filed on April 11 with the US District Court for the District of Columbia, the SEC and Binance have engaged in “productive discussions” since the last court-approved stay in February.
The talks reportedly include analysis of how the task force’s evolving mandate may impact the SEC’s original claims against the crypto giant.
“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 reads.
The SEC initiated the extension request, and Binance agreed to it. The joint request is framed as being “in the interest of judicial economy,” reflecting a desire to avoid unnecessary litigation while both sides reassess the scope and direction of the case.
This marks the second 60-day stay jointly requested by the SEC and Binance this year. The first was granted in February, just days after crypto critic Gary Gensler stepped down as SEC Chair on Jan. 20. His departure was swiftly followed by the appointment of Commissioner Mark Uyeda—a known crypto-friendly voice within the agency—as acting chair.
Uyeda’s leadership appears to have catalyzed a broader rethinking of the agency’s crypto enforcement playbook, particularly as the newly formed Crypto Task Force takes shape.
Crypto Task Force Reshaping Strategy
A key factor behind the extension request is the SEC’s internal restructuring through its newly established Crypto Task Force. Formed on Jan. 21—just one day after Gensler’s resignation—the task force has been tasked with modernizing the SEC’s approach to regulating digital assets.
Its priorities include clarifying registration pathways, designing rational disclosure regimes, and ensuring enforcement actions are proportionate and well-targeted.
This evolving strategy could significantly impact the SEC’s original case against Binance. Filed in June 2023, the lawsuit accused Binance and its founder, Changpeng “CZ” Zhao, of 13 violations including the unregistered sale of BNB and Binance USD tokens, unauthorized operation of staking services like Simple Earn and BNB Vault, and failures related to customer protections.
The establishment of the task force is seen by many in the crypto community as a potential turning point in the regulatory landscape. By reevaluating legacy lawsuits under new guidelines, the SEC may be moving away from the combative tone that characterized Gensler’s tenure—marked by sweeping enforcement actions and a contentious relationship with the industry.
Broader SEC Retreat from Aggressive Enforcement
The Binance case isn’t the only one facing delays or withdrawals. Over the past month, the SEC has either dropped or paused lawsuits against other major players in the crypto space, including Coinbase, Kraken, Gemini, Robinhood, and Consensys.
These decisions suggest a possible coordinated de-escalation across the board, reflecting both political pressures and internal reevaluation.
With Binance now operating under tighter compliance frameworks and having undergone significant restructuring since its early run-ins with US regulators, the possibility of a negotiated resolution or narrowed enforcement scope appears increasingly likely.
Still, legal uncertainty looms large. Binance’s former CEO, CZ, pleaded guilty to separate federal charges in late 2023 and stepped down from his role, adding further complexity to the case. The SEC’s civil action, however, is distinct from the DOJ’s criminal proceedings.
As part of their filing, the SEC and Binance committed to submitting another joint status report at the end of the new 60-day period.
The next update is expected by mid-June, and will likely offer deeper insight into whether a resolution is imminent or whether the litigation will continue to drag on.
Crypto watchers are cautiously optimistic. With Uyeda at the helm and a task force focused on pragmatic regulation, there is hope that a new chapter of SEC-crypto relations may be unfolding—one rooted less in sweeping enforcement and more in negotiated compliance and constructive dialogue.
CZ Denies Cooperating Against Justin Sun, Calls WSJ Report a “Smear Campaign” Amid Rising Crypto Lobbying Tensions
In related news, CZ has forcefully denied explosive allegations that he agreed to testify against Tron founder Justin Sun as part of a plea deal with the US Department of Justice (DOJ).
The claims, published by The Wall Street Journal on April 11, cite anonymous sources suggesting that Zhao’s cooperation was a previously undisclosed element of his 2023 settlement with US prosecutors.
In a sharp rebuke on social media, Zhao took to X to deny the accusations, accusing The Wall Street Journal of running a “hit piece” and implying that the outlet’s journalists may have been bribed.
“WSJ is really TRYING here. They seem to have forgotten who went to prison and who didn't,” Zhao posted on April 12. “People who become gov witnesses don’t go to prison. They are protected. I heard someone paid WSJ employees to smear me.”
Zhao, who was sentenced to four months in prison in April 2024 for Anti-Money Laundering (AML) violations, was released on Sept. 27 of the same year. Despite the jail time, he remains one of the wealthiest individuals in the world—with an estimated net worth of $60 billion at the time of his release—making him the richest person to ever serve a US prison sentence.
The allegations have sent shockwaves through the crypto community, particularly because of the close public association between Zhao and Justin Sun, the Chinese-born entrepreneur who founded the TRON blockchain and has also been the subject of several US regulatory investigations.
Sun recently said he was unaware of any such deal and dismissed the rumors. “CZ is my mentor and close friend,” he said, emphasizing that he had no reason to believe Zhao would provide evidence against him.
The denial by Sun adds another layer to an already controversial situation and raises questions about the credibility and motive of the WSJ report, which relies heavily on anonymous sources and has not been corroborated by any formal statements from the DOJ.
Allegations of Lobbying and Political Targeting
Zhao’s fiery response also included a broader critique of what he described as targeted political lobbying within the US aimed at undermining Binance and himself personally. “I also heard some rumors about some players ‘lobbying’ against us again in the US,” he wrote, alluding to potential coordinated efforts by competitors or regulatory influencers to reignite scrutiny on Binance.
This isn’t the first time Zhao has raised such claims. In late 2023, he accused collapsed crypto exchange FTX of lobbying US regulators to take action against Binance, pointing to a Federal Newswire report that claimed FTX leadership had sought regulatory pressure on rivals to bolster its own market position.
Such accusations are part of a growing narrative in the crypto industry that suggests policy and enforcement decisions are increasingly being shaped by corporate lobbying rather than transparent regulatory processes.
CZ’s recent remarks come at a time when political influence in the crypto sector is under intense scrutiny. According to a March report by the Center for Political Accountability (CPA), crypto companies poured over $134 million into the 2024 US elections through Political Action Committees (PACs) like Fairshake, raising concerns about “unchecked political spending.”
While many in the industry argue that such donations are necessary to secure fair and balanced regulation, critics warn that it risks undermining public trust.
The Wall Street Journal report on Zhao’s alleged cooperation with the DOJ comes just weeks after these revelations, leading some observers to question whether the timing of the article was influenced by broader political and regulatory battles.
Legal Context and Lingering Questions
CZ’s legal troubles began in earnest in November 2023, when he entered a plea agreement with the DOJ related to systemic AML failures at Binance. The settlement included a $4.3 billion penalty—the largest in crypto history—and his resignation as CEO.
However, the plea deal, as publicly disclosed at the time, made no mention of any cooperation agreement involving Justin Sun.
The DOJ has so far declined to comment on the WSJ report or provide clarification on whether Zhao’s plea deal includes a clause requiring him to testify against other industry figures.
Meanwhile, Justin Sun continues to face legal headwinds. He was charged by the SEC in March 2023 for unregistered securities offerings and fraud relating to the TRX and BitTorrent tokens. While Sun remains active in the crypto space, his legal status within the United States remains unclear, with some reports suggesting he is avoiding US jurisdiction.
SEC and Binance Extend Legal Pause as CZ Denies WSJ Allegations
The US Securities and Exchange Commission (SEC) and cryptocurrency exchange Binance have requested a second 60-day pause in their nearly two-year legal battle, citing ongoing discussions and recent internal regulatory developments.
The extension comes as former Binance CEO Changpeng “CZ” Zhao publicly denied a report alleging he agreed to testify against Tron founder Justin Sun in connection with his own plea agreement with the Department of Justice.
SEC and Binance Seek Additional Two-Month Pause in Prolonged Legal Battle as Crypto Task Force Reframes Case Strategy
The US Securities and Exchange Commission (SEC) and Binance, the world’s largest cryptocurrency exchange, have jointly requested another 60-day pause in their long-running legal battle, signaling a possible shift in the regulator’s approach to crypto enforcement under new leadership and the recently formed Crypto Task Force.
According to a joint status report filed on April 11 with the US District Court for the District of Columbia, the SEC and Binance have engaged in “productive discussions” since the last court-approved stay in February.
The talks reportedly include analysis of how the task force’s evolving mandate may impact the SEC’s original claims against the crypto giant.
“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 reads.
The SEC initiated the extension request, and Binance agreed to it. The joint request is framed as being “in the interest of judicial economy,” reflecting a desire to avoid unnecessary litigation while both sides reassess the scope and direction of the case.
This marks the second 60-day stay jointly requested by the SEC and Binance this year. The first was granted in February, just days after crypto critic Gary Gensler stepped down as SEC Chair on Jan. 20. His departure was swiftly followed by the appointment of Commissioner Mark Uyeda—a known crypto-friendly voice within the agency—as acting chair.
Uyeda’s leadership appears to have catalyzed a broader rethinking of the agency’s crypto enforcement playbook, particularly as the newly formed Crypto Task Force takes shape.
Crypto Task Force Reshaping Strategy
A key factor behind the extension request is the SEC’s internal restructuring through its newly established Crypto Task Force. Formed on Jan. 21—just one day after Gensler’s resignation—the task force has been tasked with modernizing the SEC’s approach to regulating digital assets.
Its priorities include clarifying registration pathways, designing rational disclosure regimes, and ensuring enforcement actions are proportionate and well-targeted.
This evolving strategy could significantly impact the SEC’s original case against Binance. Filed in June 2023, the lawsuit accused Binance and its founder, Changpeng “CZ” Zhao, of 13 violations including the unregistered sale of BNB and Binance USD tokens, unauthorized operation of staking services like Simple Earn and BNB Vault, and failures related to customer protections.
The establishment of the task force is seen by many in the crypto community as a potential turning point in the regulatory landscape. By reevaluating legacy lawsuits under new guidelines, the SEC may be moving away from the combative tone that characterized Gensler’s tenure—marked by sweeping enforcement actions and a contentious relationship with the industry.
Broader SEC Retreat from Aggressive Enforcement
The Binance case isn’t the only one facing delays or withdrawals. Over the past month, the SEC has either dropped or paused lawsuits against other major players in the crypto space, including Coinbase, Kraken, Gemini, Robinhood, and Consensys.
These decisions suggest a possible coordinated de-escalation across the board, reflecting both political pressures and internal reevaluation.
With Binance now operating under tighter compliance frameworks and having undergone significant restructuring since its early run-ins with US regulators, the possibility of a negotiated resolution or narrowed enforcement scope appears increasingly likely.
Still, legal uncertainty looms large. Binance’s former CEO, CZ, pleaded guilty to separate federal charges in late 2023 and stepped down from his role, adding further complexity to the case. The SEC’s civil action, however, is distinct from the DOJ’s criminal proceedings.
As part of their filing, the SEC and Binance committed to submitting another joint status report at the end of the new 60-day period.
The next update is expected by mid-June, and will likely offer deeper insight into whether a resolution is imminent or whether the litigation will continue to drag on.
Crypto watchers are cautiously optimistic. With Uyeda at the helm and a task force focused on pragmatic regulation, there is hope that a new chapter of SEC-crypto relations may be unfolding—one rooted less in sweeping enforcement and more in negotiated compliance and constructive dialogue.
CZ Denies Cooperating Against Justin Sun, Calls WSJ Report a “Smear Campaign” Amid Rising Crypto Lobbying Tensions
In related news, CZ has forcefully denied explosive allegations that he agreed to testify against Tron founder Justin Sun as part of a plea deal with the US Department of Justice (DOJ).
The claims, published by The Wall Street Journal on April 11, cite anonymous sources suggesting that Zhao’s cooperation was a previously undisclosed element of his 2023 settlement with US prosecutors.
In a sharp rebuke on social media, Zhao took to X to deny the accusations, accusing The Wall Street Journal of running a “hit piece” and implying that the outlet’s journalists may have been bribed.
“WSJ is really TRYING here. They seem to have forgotten who went to prison and who didn't,” Zhao posted on April 12. “People who become gov witnesses don’t go to prison. They are protected. I heard someone paid WSJ employees to smear me.”
Zhao, who was sentenced to four months in prison in April 2024 for Anti-Money Laundering (AML) violations, was released on Sept. 27 of the same year. Despite the jail time, he remains one of the wealthiest individuals in the world—with an estimated net worth of $60 billion at the time of his release—making him the richest person to ever serve a US prison sentence.
The allegations have sent shockwaves through the crypto community, particularly because of the close public association between Zhao and Justin Sun, the Chinese-born entrepreneur who founded the TRON blockchain and has also been the subject of several US regulatory investigations.
Sun recently said he was unaware of any such deal and dismissed the rumors. “CZ is my mentor and close friend,” he said, emphasizing that he had no reason to believe Zhao would provide evidence against him.
The denial by Sun adds another layer to an already controversial situation and raises questions about the credibility and motive of the WSJ report, which relies heavily on anonymous sources and has not been corroborated by any formal statements from the DOJ.
Allegations of Lobbying and Political Targeting
Zhao’s fiery response also included a broader critique of what he described as targeted political lobbying within the US aimed at undermining Binance and himself personally. “I also heard some rumors about some players ‘lobbying’ against us again in the US,” he wrote, alluding to potential coordinated efforts by competitors or regulatory influencers to reignite scrutiny on Binance.
This isn’t the first time Zhao has raised such claims. In late 2023, he accused collapsed crypto exchange FTX of lobbying US regulators to take action against Binance, pointing to a Federal Newswire report that claimed FTX leadership had sought regulatory pressure on rivals to bolster its own market position.
Such accusations are part of a growing narrative in the crypto industry that suggests policy and enforcement decisions are increasingly being shaped by corporate lobbying rather than transparent regulatory processes.
CZ’s recent remarks come at a time when political influence in the crypto sector is under intense scrutiny. According to a March report by the Center for Political Accountability (CPA), crypto companies poured over $134 million into the 2024 US elections through Political Action Committees (PACs) like Fairshake, raising concerns about “unchecked political spending.”
While many in the industry argue that such donations are necessary to secure fair and balanced regulation, critics warn that it risks undermining public trust.
The Wall Street Journal report on Zhao’s alleged cooperation with the DOJ comes just weeks after these revelations, leading some observers to question whether the timing of the article was influenced by broader political and regulatory battles.
Legal Context and Lingering Questions
CZ’s legal troubles began in earnest in November 2023, when he entered a plea agreement with the DOJ related to systemic AML failures at Binance. The settlement included a $4.3 billion penalty—the largest in crypto history—and his resignation as CEO.
However, the plea deal, as publicly disclosed at the time, made no mention of any cooperation agreement involving Justin Sun.
The DOJ has so far declined to comment on the WSJ report or provide clarification on whether Zhao’s plea deal includes a clause requiring him to testify against other industry figures.
Meanwhile, Justin Sun continues to face legal headwinds. He was charged by the SEC in March 2023 for unregistered securities offerings and fraud relating to the TRX and BitTorrent tokens. While Sun remains active in the crypto space, his legal status within the United States remains unclear, with some reports suggesting he is avoiding US jurisdiction.