CZ post on X about Ceffu and Binance.US contradicts SEC claims, adds to confusion

After a decide declined to provide the USA Securities and Change Fee (SEC) unfettered entry to Binance.US software program at a listening to on Sept. 18, Binance CEO Changpeng Zhao (CZ) took to X (previously Twitter) to make an announcement about one level of competition with the SEC.

“For the file. Binance US doesn’t use, and have NEVER used Ceffu or Binance Custody. You possibly can’t simply make these items up.” CZ mentioned in a Sept. 19 publish. CZ’s statements didn’t make the file any clearer.

The position Ceffu performed within the Binance.US ecosystem has been a priority for the SEC as a result of Binance.US has agreed to the SEC’s June 17 consent order, which stated:

“For the avoidance of doubt, U.S.-based personnel for BAM Buying and selling and BAM Administration can have full management over Buyer Fiat Belongings and Buyer Crypto Belongings.”

BAM is the Binance.US holding firm. Bloomberg reported in Might, citing a 2022 company submitting, that the corporate that runs Ceffu was owned by CZ, who isn’t U.S.-based.

Ceffu posted an announcement on its web site on Sept. 15 disputing an SEC declare in a Sept. 14 court docket submitting that linked it to Binance.US. Ceffu acknowledged that it gives companies “in choose jurisdictions, excluding the USA, amongst others.”

Associated: SEC sees temporary setback in request to access Binance.US software

Nonetheless, a Binance.US doc titled “Binance.US Digital Asset & Custody Operations Coverage” that was marked “Confidential” and submitted to the court docket on Sept. 15, in a bit titled “Techniques. Overview,” it stated:

“We license pockets custody software program and assist companies from Ceffu (beforehand Binance Holdings Restricted). […] The Ceffu answer makes up a majority of our pockets know-how.”

Binance launched Binance Custody in 2021. Ceffu was later rebranded from Binance Custody. In March, a Binance spokesperson told Cointelegraph that Ceffu was its “impartial institutional custody accomplice.”

In its Sept. 18 court docket submitting, the SEC referred to Ceffu as a “mysterious Binance-related entity” and identified that Binance.US has been inconsistent in its descriptions of its relationship with Ceffu in its dealings with the company. “It’s greater than probably that BAM nonetheless doesn’t perceive what Ceffu is,” the SEC acknowledged.

Journal: Deposit risk: What do crypto exchanges really do with your money?