Crypto News– Binance CEO and co-founder Changpeng Zhao, known as CZ, recently took to Twitter to firmly deny any alleged connections between Binance.US and the cryptocurrency custodian Ceffu. This response from CZ came in the wake of a U.S. court’s decision to reject the United States Securities and Exchange Commission’s (SEC) request for an inspection order in its legal battle against Binance.
Binance CEO Challenges SEC’s Accusations, Disavows Binance.US Link to Ceffu
In his tweet, CZ stated unequivocally that Binance.US has never utilized the services of Ceffu, formerly recognized as Binance Custody. The association between Binance.US and Ceffu is among the various aspects under scrutiny by the SEC. The regulatory body has accused the global cryptocurrency exchange of misusing customer funds and committing other securities violations.
In its filing on September 18, the SEC highlighted that Binance.US had provided inconsistent descriptions of its relationship with Ceffu. Moreover, the SEC suggested that it’s possible Binance.US “does not understand what Ceffu is.”
Notably, just a week prior to CZ’s tweet, Ceffu had issued a statement refuting the SEC’s claims of any ties with Binance. US. According to Ceffu’s statement, it offers custodial services in specific jurisdictions, excluding the United States.
Meanwhile, Binance.US’s legal team confirmed that Changpeng Zhao had received a $250 million loan from BAM Management U.S. Holdings, another affiliate of his. The SEC’s recent filings allege that Zhao transferred these funds to BAM Trading upon receipt. These allegations align with previous claims made by a popular cryptocurrency account, which suggested that Zhao had borrowed money from customer funds.
In response to these allegations, the SEC has accused Binance.US of being uncooperative in the investigation. Conversely, Binance.US has argued that the regulator’s requests for documents constitute a “fishing expedition” and go “overboard.”
These developments have raised concerns within the cryptocurrency community, with some drawing parallels to the actions of FTX and Alameda, fueling apprehensions of a potential market downturn.
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