Binance and Ceffu Respond to SEC’s Claims
In response to allegations made by the Securities and Exchange Commission (SEC), Binance and Ceffu have issued statements denying any relationship between the two companies. The SEC had claimed in a court filing that wallet provider Ceffu was connected to Binance, contradicting Binance’s previous stance. Additionally, the SEC argued against Binance’s request for a protective order, calling it baseless. The SEC raised concerns about Ceffu’s control over customer assets in a memorandum filed on September 14th.
Changpeng Zhao Denies Use of Ceffu Software
Binance’s CEO, Changpeng Zhao, denied that Binance.US used custody software provided by its international counterpart. This statement contradicted earlier claims made by Binance.US in legal filings. The SEC is currently investigating Binance Custody, which has been rebranded as Ceffu, to ensure that the exchange’s assets are not transferred overseas.
A Contradictory Statement?
Zhao’s denial contradicts statements made by lawyers representing Binance.US, who stated that the exchange did use custody software sourced from Binance Holdings Ltd (now Ceffu). The lawyers clarified that while they referred to the software as “Ceffu,” they never suggested licensing it from any entity other than BHL.
Ceffu Rejects SEC Allegations
Ceffu also responded to the SEC’s allegations regarding its custody services, rejecting the claims and emphasizing its commitment to servicing institutional clients with digital asset custody solutions in select jurisdictions, excluding the United States. They stated that their operations and services are separate from those of BAM and BHL.
Hot Take: SEC Investigation Causes Ripple in Binance’s Operations
The ongoing investigation by the SEC into Binance and its related entities has created uncertainty and contradictory statements. The SEC’s claims of a connection between Ceffu and Binance have been denied, raising questions about the transparency and compliance of these companies. As regulatory scrutiny in the crypto industry intensifies, it is crucial for exchanges to ensure clarity and consistency in their operations. This case highlights the need for greater regulatory oversight and clear guidelines to protect investors and maintain trust in the cryptocurrency market.
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