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CZ’s X post refutes SEC claims against Ceffu and Binance.US.

On September 18, following a court hearing where a judge denied the United States Securities and Exchange Commission (SEC) unrestricted access to Binance.US software, Binance CEO Changpeng Zhao (CZ) addressed a particular issue with the SEC through X (formerly Twitter).

In a post on September 19, CZ stated, “For the record, Binance US has never utilized Ceffu or Binance Custody.

These claims are baseless and fabricated.” Despite CZ’s statement, the situation remains unresolved and the records remain unclear.

The SEC has expressed concern about the involvement of Ceffu in the operations of Binance.US, as it relates to the consent order issued by the SEC on June 17.

which stated:

“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.”

According to a corporate filing from 2022, as reported by Bloomberg in May, CZ, who is not based in the United States, is the owner of the company responsible for operating Ceffu.

It is important to note that BAM serves as the holding company for Binance.US.

On September 15, Ceffu issued a statement on its website refuting an SEC allegation made in a court filing on September 14, which connected it to Binance.US.

According to Ceffu, its services are offered “in select jurisdictions, excluding the United States, among others.”

This statement clarifies the jurisdictional scope of Ceffu’s operations.

Revealing Insights and Inconsistencies: Binance’s Relationship with Ceffu Explored in SEC Confidential Court Document

Binance's Relationship with Ceffu

On September 15, a confidential document titled “Binance.US Digital Asset & Custody Operations Policy” was submitted to the court by Binance.US.

This document shed light on the relationship between Binance and Ceffu, a previously rebranded entity from Binance Custody.

it stated:

“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.”

Binance launched Binance Custody in 2021, and a Binance spokesperson referred to Ceffu as Binance’s “independent institutional custody partner” in March.

However, in a court filing on September 18, the SEC referred to Ceffu as a “mysterious Binance-related entity” and highlighted inconsistencies in Binance.US’s descriptions of its relationship with Ceffu during its interactions with the agency.

The SEC suggested that BAM, the parent company of Binance.US, still lacks a clear understanding of what Ceffu truly represents.

These developments raise questions about the nature of the relationship between Binance, Binance.US, and Ceffu, as well as the level of transparency surrounding their operations.

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