Binance CEO Changpeng Zhao (CZ) made the remarks at one point in the SEC case. The case involves Ceffu, with whom BinanceUS is allegedly affiliated. The latest developments are as follows…
Binance and Ceffu relationship
Last week, the SEC alleged that Ceffu provided “wallet custody software and support services” to BAM. On September 17, Ceffu denied the SEC’s alleged BinanceUS contact in a blog post. As Kriptokoin.com, we included the company’s statements in this article.
Binance CEO CZ recently discussed Binance Custody and Ceffu from his X account. CZ stated that BinanceUS has “NEVER” used either Ceffu or Binance Custody. However, the SEC describes the relationship between Binance and Ceffu as “mysterious”.
https://twitter.com/cz_binance/status/1704116090089968082
There is a possibility that Binance’s holding company, BAM, does not fully understand Ceffu. The SEC states that BinanceUS has inconsistently described its relationship with Ceffu to the relevant authorities.
Conflict between SEC and Binance
Previously, Ceffu clarified that it does not provide services to BinanceUS and BAM and does not operate in the United States. This statement came after another Binance service, Custody, was rebranded as Ceffu.
However, the SEC is raising the possibility of BinanceUS co-locating with the global exchange. During the hearing, more information was requested regarding Binance’s relationship with Ceffu and how customer assets were managed.
We have been made aware of the SEC’s claims that Ceffu has provided third-party "wallet custody software and support services" to BAM Trading, a US entity. We strongly reject those allegations.
More details are provided in our official statement: https://t.co/Ju5YfZirtI pic.twitter.com/BAqarIPHcG
— Ceffu (@CeffuGlobal) September 15, 2023
BinanceUS, on the other hand, describes the SEC’s demands as “too broad and burdensome.” The future of the case seems to be shaped in the light of these statements. Finally, CEO CZ’s statements mark a new phase in the litigation between the SEC and the leading exchange. Binance continues to come to the fore with critical statements.
Background
Binance launched Binance Custody in 2021. Ceffu later rebranded as Custody. In March, an exchange spokesman said Ceffu was an “independent institutional custody partner.”
The SEC referred to Ceffu as a “mysterious entity related to Binance” in its Sept. 18 court filing. He also pointed out that BinanceUS has been inconsistent in its statements regarding its relationship with Ceffu. “It is possible that BAM still does not understand what Ceffu is,” the SEC said.
So @cz_binance trying to claim Binance US never used "Ceffu" because at the time the agreement was signed, Ceffu was called "BHL Wallet Solution" & the entity was Binance Holdings Limited, which later became Ceffu.
But he also forgets, his own lawyers also admitted the new… pic.twitter.com/373LEiNuaD
— Adam Cochran (adamscochran.eth) (@adamscochran) September 19, 2023
As a result, this controversy between Binance and the SEC has attracted a lot of attention in the crypto world. CZ’s statements clarified the company’s stance against the allegations. The outcome of this case is of great importance for the industry. The SEC case began the day before the Coinbase case in June. An important critical hearing took place on September 18.
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