Binance.US Maintains Its Distance from Ceffu Amidst SEC Scrutiny: CEO Addresses Claims
Summary:
The U.S. Securities and Exchange Commission (SEC) has been denied unrestricted access to Binance.US's software. Following the ruling, Binance CEO, Changpeng Zhao (CZ), stated that Binance US has never used Ceffu or Binance Custody. The SEC has been investigating Ceffu’s role within the Binance.US ecosystem due to earlier agreements concerning the control of customer assets. Amidst conflicting reports and statements, the specifics of Ceffu's role and the nature of its relationship with Binance remain unclear.
On September 18, a court refused to grant the US Securities and Exchange Commission (SEC) unrestricted access to Binance.US's software. Following the hearing, Binance's CEO, Changpeng Zhao (CZ), used platform X (previously known as Twitter) to address the SEC's allegations, claiming that "Binance US has never utilized Ceffu or Binance Custody...these claims are fabrications." Despite CZ's comments, the nature of the relationship between Binance.US and Ceffu remains ambiguous.
The SEC has been scrutinizing Ceffu's role within the Binance.US ecosystem because of the earlier acceptance by Binance.US to the SEC's June 17 consent decree. That agreement specified that only U.S.-based personnel of BAM Trading and BAM Management would control customer assets. BAM is the parent company of Binance.US.
A May report by Bloomberg, citing a 2022 business filing, stated that CZ, who does not reside in the U.S., owned the firm running Ceffu. However, Ceffu, on September 15, refuted an SEC allegation from the previous day linking it to Binance.US. Ceffu explained it offers its services in certain regions, excluding the U.S.
Amidst this murkiness, a confidential document from Binance.US, dated September 15 and named "Binance.US Digital Asset & Custody Operations Policy," suggested that Ceffu provides the majority of its wallet technology.
Last year, Binance introduced Binance Custody, which was subsequently renamed as Ceffu. In March, Binance's spokesperson told Cointelegraph that Ceffu was an "independent provider of institutional custody services."
The SEC's September 18 court filing described Ceffu as an "enigmatic entity connected to Binance," alleging that Binance.US's portrayal of its relationship with Ceffu has been inconsistent. The SEC suggested that BAM probably does not fully comprehend what Ceffu is.
Published At
9/19/2023 5:52:06 PM
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