Binance and SEC SAGA – Controversies Erupt

Still on multiple stings on the Binance exchange, a judge recently declined to give the United States Securities and Exchange Commission (SEC) unfettered access to Binance.US software at a hearing on Sept. 18. After that, the CEO of the world’s largest crypto exchange, Binance, took to X (formerly Twitter) to clarify few things regarding its dealings with Ceffu.

“For the record. Binance US does not use, and has NEVER used Ceffu or Binance Custody. You can’t just make this stuff up.” CZ said in a Sept. 19 post. CZ’s statements did not make the record any clearer.

The SEC still finds something fishy about Ceffu’s role in the Binance.US ecosystem. This is because Binance.US has agreed to the SEC’s June 17 consent order, which states that:

“For the avoidance of doubt, U.S.-based personnel for BAM Trading and BAM Management will have complete control over Customer Fiat Assets and Customer Crypto Assets.”

  • BAM is the Binance.US holding company.

As in the SEC’s Sept. 18 court filing, Ceffu is referred to as a “mysterious Binance-related entity”, relating that Binance.US has been inconsistent in clarifying its relationship with Ceffu and its dealings with the agency.

“It is more than likely that BAM still doesn’t understand what Ceffu is,” the SEC stated.

Recall that Bloomberg revealed in May a 2022 corporate filing displaying that the company that runs Ceffu was owned by CZ, which is not U.S.-based.

Ceffu also posted a claim disputing SEC’s claim in a Sept. 14 court filing that linked it to Binance.US. Ceffu’s claim revealed that it provides services “in select jurisdictions, excluding the United States, among others.”

However, with CZ’s response, a controversy has enveloped Ceffu’s dealings with Binance.US.

A Binance.US document titled “Binance.US Digital Asset & Custody Operations Policy” that was marked “Confidential” and submitted to the court on Sept. 15, in a section titled “Systems. Overview,” stated that:

“We license wallet custody software and support services from Ceffu (previously Binance Holdings Limited). […] The Ceffu solution makes up a majority of our wallet technology.”

The controversial response of Binance CZ has created several reactions from the X(formerly Twitter) community. One X user noted that:

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 wallets from the decent decree were created using Ceffu and confirmed it as BHL.





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