– Binance CEO CZ denies SEC allegations about Binance.US using a custody unit linked to its parent company.
– CZ states that Binance.US has never used Ceffu or Binance Custody.
– The SEC has asked for more information on how customer assets are handled at Binance.US, particularly regarding Ceffu.
– BAM, the company behind Binance.US, claims to rely on wallet custody software developed by Binance Holdings Limited, which is referred to as Ceffu.
– BAM explains that the use of the term Ceffu was due to confusion about the correct terminology for the software.
– A judge has encouraged the SEC and BAM to work together and resolve the issue.
– The SEC has sued Binance and CZ for violating federal securities laws.
– A hearing has been scheduled for October 12th, and a joint status report is due by October 10th.
Binance CEO Changpeng “CZ” Zhao has denied allegations by the Securities and Exchange Commission (SEC) that Binance.US, a subsidiary of Binance, used a custody unit called Ceffu that may expose clients to a foreign entity. Zhao stated on social media platform X (formerly known as Twitter) that Binance US does not and has never used Ceffu or Binance Custody. The SEC has been requesting more information from BAM, the company behind Binance.US, regarding customer asset handling. The SEC specifically wants details about Ceffu, which it believes controls customer assets and is affiliated with Binance. BAM has made inconsistent statements about Ceffu, according to the SEC’s lawyer. BAM said it relies on wallet custody software developed by Binance Holdings Limited, which it refers to as Ceffu, but this is due to confusion over the correct terminology. A D.C. district judge has urged the SEC and BAM to “turn down the temperature” during a recent hearing. The SEC sued Binance and Zhao in June for allegedly violating federal securities laws. The SEC and BAM have agreed to a hearing on October 12 and will file a joint status report by October 10.
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