Binance CEO Refutes SEC Claims, Denies Binance.US Ties to Ceffu

• Binance CEO Changpeng Zhao in a tweet on X denied any ties between Binance.US and crypto custodian Ceffu.
• The SEC accused the corporate of being inconsistent in characterizing the character of its relationship with Ceffu.
• The SEC means that Binance holding firm BAM “doesn’t perceive what Ceffu is”

Binance CEO and co-founder Changpeng Zhao took to X (Twitter) to disclaim alleged connections between Binance.US and crypto custodian Ceffu. His submit got here on the heels of a U.S. courtroom refusal to grant an inspection order to america Securities and Change Fee (SEC) in its lawsuit in opposition to Binance.

In response to the tweet, Zhao stated Binance.US has by no means used the companies of Ceffu, previously generally known as Binance Custody. Ties between Binance.US and Ceffu provides to the checklist of issues being investigated by the SEC. The regulator claims the worldwide crypto trade enterprise has been misusing buyer funds, alongside different securities violations.

In its September 18 submitting, the SEC famous that Binance.US had been inconsistent in characterizing its relationship with Ceffu. Moreover, the regulator said that it’s doubtless the corporate “doesn’t perceive what Ceffu is.”

Barely per week in the past, Ceffu posted a press release disputing SEC submitting claims that it had ties to Binance.US. Per the assertion, Ceffu stated it gives custodian companies in choose jurisdictions, excluding america.

In the meantime, Binance.US’s authorized group confirmed that Changpeng Zhao obtained a $250 million mortgage from BAM Administration U.S. Holdings — one other considered one of his associates.

Current filings by the SEC declare that upon receipt of the funds, Zhao transferred them to BAM Buying and selling. The allegations by the SEC aligned with earlier allegations by a well-liked crypto account that Zhao loaned himself cash utilizing buyer’s funds.

Since making these claims, the SEC has accused Binance.US of being uncooperative within the investigation. Then again, Binance.US stated the regulator’s doc requests are a “fishing expedition” and “overboard.”

Some in crypto circles say the corporate’s actions are just like these of FTX and Alameda, inducing fears of a doable collapse.