Binance CEO Changpeng Zhao (CZ) has denied allegations that Binance.US, the U.S. subsidiary of the exchange, ever used Ceffu or Binance Custody for its custodial services. This statement comes in response to the Securities and Exchange Commission’s (SEC) request to investigate potential fund movement violations by Binance.US. The SEC is looking into whether Binance.US used Ceffu to transfer U.S. customer funds abroad, which would violate prior agreements.
This denial from Zhao contradicts earlier court filings by Binance.US, where they acknowledged using custody software initially provided by Binance Holdings Ltd, which later rebranded as Binance Custody. These filings frequently mentioned Ceffu. The discrepancy between Zhao’s recent denial and the previous statements has raised concerns about the veracity of Binance’s claims and calls for further clarification.
The controversy surrounding Binance continues to grow and adds to the challenges the exchange faces in addressing allegations of unregistered exchange operations and listing unregistered securities in the United States. The SEC has pushed for Binance.US and related companies to produce discovery information regarding its crypto wallet custody, relationship with Ceffu, control over customer assets, and other financial documents. The emergence of Ceffu as a point of contention between regulatory authorities and the crypto platform further complicates the situation.
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