You Can’t Just Make This Stuff Up: CZ
The CEO of Binance, Changpeng “CZ” Zhao, has responded to allegations made by the U.S. Securities and Exchange Commission (SEC) regarding Binance.US. The SEC claimed that Binance.US may have used a custody unit connected to its parent company, potentially putting clients at risk. However, Zhao denied these claims in a post on X, the social network formerly known as Twitter.
Contradicting Legal Statements
CZ has denied the allegations that Binance’s U.S. division utilized custody software from its global parent company. This contradicts earlier legal statements made by Binance.US. The SEC is currently investigating Binance Custody, now called Ceffu, to ensure that assets from the U.S. exchange are not moved abroad.
Binance’s founder stated that Binance.US does not use or have ever used Ceffu or Binance Custody. This statement came after a court hearing between Binance.US and the SEC in Washington, DC.
Earlier claims by attorneys for Binance.US stated that the U.S. exchange had used custody software supplied by its global counterpart, Binance Holdings Ltd (BHL), which was later rebranded as Ceffu.
Is There Something Fishy Going On?
The SEC wants more information about Ceffu and how it manages client assets. They also pointed out contradictory remarks made by BAM, the legal name for Binance.US, regarding Ceffu and Binance.
Binance.US clarified in their legal documents that while they referred to the software as Ceffu, they never implied that it was licensed from any entity other than BHL. They maintained that they use wallet custody software licensed from BHL.
A district judge in Washington, D.C., urged both the SEC and BAM to collaborate and de-escalate the situation during a hearing. Both parties agreed to a hearing on October 12 and committed to submitting a joint status report by October 10.
Hot Take: The Battle Between Binance.US and the SEC Continues
The CEO of Binance, CZ, has denied allegations made by the SEC that Binance.US used custody software linked to its parent company. This contradicts earlier statements made by Binance.US’s attorneys. The SEC is investigating whether assets from the U.S. exchange were moved abroad. The agency wants more information about Ceffu, the wallet service formerly known as Binance Custody, which manages client assets.
The SEC pointed out contradictory remarks made by BAM, Binance.US’s legal name, regarding Ceffu and Binance. A district judge has urged both parties to collaborate and resolve the tension. A hearing is scheduled for October 12, with a joint status report due on October 10.
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