The court’s decision stated that the OFR failed to present enough evidence to support its conclusion.
Binance US had its license from the money-services company revoked in an emergency suspension order.
According to the ruling from the Florida First District Court of Appeal on Wednesday, Binance US, a subsidiary of Binance, successfully appealed against the Emergency Suspension Order (ESO) issued by the Florida state regulator.
The First District Court of Appeal for the State of Florida ruled on May 22 that Changpeng Zhao and Binance Holdings’ plea agreements, which were deemed insufficient for non-compliance with the Anti-Money Laundering (AML) and Bank Secrecy Act, did not prohibit Binance US from operating in the state.
The court concluded that the Florida Office of Financial Regulation (OFR) misinterpreted sections and failed to provide enough evidence to justify the temporary revocation of Binance US’ license, which was based on allegations that Zhao’s actions posed an immediate threat to public safety and welfare, necessitating an emergency suspension.
On November 29, 2023, Binance US had its money-services company license revoked and was ordered to cease all money transmission activities by the OFR through an emergency suspension order (ESO).
The court’s analysis of the order revealed that, in addition to the potential for significant financial losses, the ESO did not consider alternative measures to license suspension. Binance US, as a subsidiary of Binance, experienced a sharp decline in trading volumes due to various factors, including the suspension of its money transmitter license and increased regulatory scrutiny.
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