Changpeng Zhao denies Binance.US ever used Ceffu to custody funds, contradicting courtroom filings

by Jeremy

Binance CEO Changpeng Zhao (CZ) has denied that its U.S. subsidiary, Binance.US, ever used Ceffu or Binance Custody for custodial companies.

Zhao made this assertion in response to the Securities and Alternate Fee’s (SEC) request to research potential fund motion violations by the embattled subsidiary of his trade. The monetary regulator is investigating Binance.US‘s use of Ceffu, which is likely to be serving the agency and, due to this fact, getting used to switch U.S. buyer funds overseas regardless of prior agreements.

In the meantime, this denial contrasts with earlier statements made by Binance.US in courtroom filings, the place they acknowledged using custody software program initially supplied by Binance Holdings Ltd, which later rebranded as Binance Custody. These filings and correspondences steadily talked about Ceffu.


Zhao’s current denials have sparked issues and raised questions in regards to the veracity of earlier statements, prompting requires additional clarification.

Fund Supervisor Adam Cochran famous the discrepancy on X (previously Twitter), saying that if Zhao is keen to lie about what’s in courtroom paperwork, he may lie about security or belongings.

The continuing controversy surrounding Binance provides additional challenges to the trade’s efforts in addressing allegations of unregistered trade operations and itemizing unregistered securities in the USA. The emergence of Ceffu now turns into one other level of competition between the regulatory authorities and the crypto platform.

On its half, BAM, which is the corporate behind Binance.US, claims that Binance is simply a third-party vendor that gives pockets companies. Nevertheless, the SEC argues that the identical particular person owns Binance and BAM.

The SEC just lately pushed for Binance.US and associated corporations to supply discovery info in varied areas, together with the character of its crypto pockets custody and its relationship with the Ceffu pockets, communications concerning its management over buyer belongings, and different monetary paperwork. 

The submit Changpeng Zhao denies Binance.US ever used Ceffu to custody funds, contradicting courtroom filings appeared first on CryptoSlate.

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