“It is much than apt that BAM inactive doesn’t recognize what Ceffu is,” the SEC stated aft trying to untangle the web of relationships betwixt entities.
After a justice declined to springiness the United States Securities and Exchange Commission (SEC) unfettered entree to Binance.US bundle astatine a proceeding connected Sept. 18, Binance CEO Changpeng Zhao (CZ) took to X (formerly Twitter) to marque a connection astir 1 constituent of contention with the SEC.
“For the record. Binance US does not use, and person NEVER utilized Ceffu oregon Binance Custody. You can't conscionable marque this worldly up.” CZ said successful a Sept. 19 post. CZ’s statements did not marque the grounds immoderate clearer.
For the record. Binance US does not use, and person NEVER utilized Ceffu oregon Binance Custody.
You can't conscionable marque this worldly up. ♂️ https://t.co/JIkIVTf8tc
The relation Ceffu played successful the Binance.US ecosystem has been a interest for the SEC due to the fact that Binance.US has agreed to the SEC’s June 17 consent order, which stated:“For the avoidance of doubt, U.S.-based unit for BAM Trading and BAM Management volition person implicit power implicit Customer Fiat Assets and Customer Crypto Assets.”
BAM is the Binance.US holding company. Bloomberg reported successful May, citing a 2022 firm filing, that the institution that runs Ceffu was owned by CZ, who is not U.S.-based.
Ceffu posted a connection connected its website connected Sept. 15 disputing an SEC assertion successful a Sept. 14 tribunal filing that linked it to Binance.US. Ceffu stated that it provides services “in prime jurisdictions, excluding the United States, among others.”
However, a Binance.US papers titled “Binance.US Digital Asset & Custody Operations Policy” that was marked “Confidential” and submitted to the tribunal connected Sept. 15, successful a conception titled “Systems. Overview,” it stated:“We licence wallet custody bundle and enactment services from Ceffu (previously Binance Holdings Limited). [...] The Ceffu solution makes up a bulk of our wallet technology.”
Binance launched Binance Custody successful 2021. Ceffu was aboriginal rebranded from Binance Custody. In March, a Binance spokesperson told Cointelegraph that Ceffu was its “independent organization custody partner.”
So @cz_binance trying to assertion Binance US ne'er utilized "Ceffu" due to the fact that astatine the clip the statement was signed, Ceffu was called "BHL Wallet Solution" & the entity was Binance Holdings Limited, which aboriginal became Ceffu.
But helium besides forgets, his ain lawyers besides admitted the new… pic.twitter.com/373LEiNuaD
In its Sept. 18 tribunal filing, the SEC referred to Ceffu arsenic a “mysterious Binance-related entity” and pointed retired that Binance.US has been inconsistent successful its descriptions of its narration with Ceffu successful its dealings with the agency. “It is much than apt that BAM inactive doesn’t recognize what Ceffu is,” the SEC stated.