The Safety of Binance.US Customer Assets
Amid the ongoing SEC case against Binance, one of the main concerns has been the safety of customer assets on Binance.US. The SEC initially raised concerns about Binance mishandling customer deposits by sending them to entities controlled by Binance CEO Changpeng Zhao. Although an agreement was quickly reached to keep U.S. customer deposits within the U.S., the regulator has accused Binance.US of breaching the deal by using a custody service provided by Binance: Ceffu, formerly known as Binance Custody.
Binance’s Pushback Against SEC Claims
Binance CEO Changpeng Zhao, also known as CZ, has publicly refuted the SEC’s claims. In a recent Twitter post, CZ asserted that Binance.US has never used Ceffu or Binance Custody. However, this contradicts statements made by Binance.US’ lawyers in court filings where they admitted to using Ceffu’s custody service but maintained sole control over wallet keys and customer assets in line with the consent order agreement.
Community Backlash and Concerns
Members of the crypto community have criticized CZ for his contradictory statements, questioning his credibility regarding the safety of customer deposits. This backlash comes as the SEC expressed concerns about Binance.US’ auditor struggling to prove full collateralization at certain times. Despite these concerns, Judge Zia Faruqui refrained from ruling in favor of expedited discovery or Binance’s opposition to it and called for both parties to work towards a compromise.
Hot Take: Questions About Binance’s Leadership
The SEC case against Binance has shed light on issues surrounding the safety of customer assets and raised questions about CZ’s knowledge and transparency within the company. As the legal battle continues, it remains to be seen how this will impact Binance’s reputation and the overall crypto industry.
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