- Binance CEO CZ refutes SEC claims, denying Binance.US use of Ceffu or Binance Custody and sparking a legal dispute.
- SEC asserts Ceffu’s connection to Binance, challenging Binance’s protective order request and alleging violations of a prior agreement regarding investor fund transfers.
- Legal battle between the SEC and Binance.US intensifies, with the judge urging collaboration to expedite the case’s resolution, impacting cryptocurrency regulation.
Changpeng “CZ” Zhao, CEO of the renowned cryptocurrency exchange Binance, has responded to the legal issues involving Binance.US and the United States Securities and Exchange Commission (SEC).
CZ clarified on social media platform X (formerly Twitter) that:
“For the record. Binance US does not use, and have NEVER used Ceffu or Binance Custody.”
This statement addresses concerns raised by the SEC regarding the use of Ceffu by Binance.US, as the regulator is cautious about foreign entities controlling American customers’ assets.
The agency’s latest filing contradicts Binance’s previous claims, asserting that Ceffu is indeed “Binance-related.” It opposes Binance’s request for a protective order against their investigation, labeling it meritless. In June, the SEC filed a lawsuit against Binance.US, Binance Holdings, and CZ, alleging unlicensed securities exchange operations.
The SEC contends that Binance.US, in reality, represents a rebranded version of Binance Custody, serving the parent company and facilitating the transfer of investors’ funds overseas, contrary to their prior agreement.
Ceffu maintains its independence, but its relationship with Binance remains under scrutiny. The company asserts its commitment to providing digital asset wallet solutions outside the US while prioritizing compliance and transparency.
In ongoing legal proceedings, the SEC accuses Binance.US of violating their agreement, prompting the regulator to seek a court order for further investigation into the exchange’s operations.
To expedite the trial, the presiding judge urged the SEC and BAM Trading, which manages Binance.US, to collaborate in resolving their differences, ensuring the case moves forward without delay. The outcome of this legal battle will impact the cryptocurrency industry’s regulatory landscape.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.