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CZ post on X about Ceffu and Binance.US opposes SEC declares, includes to confusion

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After a judge decreased to offer the United States Securities and Exchange Commission (SEC) unconfined gainaccessto to Binance.US softwareapplication at a hearing on Sept. 18, Binance CEO Changpeng Zhao (CZ) took to X (formerly Twitter) to make a declaration about one point of contention with the SEC.

“For the record. Binance UnitedStates does not utilize, and have NEVER utilized Ceffu or Binance Custody. You can’t simply make this things up.” CZ stated in a Sept. 19 post. CZ’s declarations did not make the record any clearer.

The function Ceffu played in the Binance.US environment hasactually been a issue for the SEC since Binance.US has concurred to the SEC’s June 17 approval order, which specified:

“For the avoidance of doubt, U.S.-based workers for BAM Trading and BAM Management will have total control over Customer Fiat Assets and Customer Crypto Assets.”

BAM is the Binance.US holding business. Bloomberg reported in May, mentioning a 2022 business filing, that the business that runs Ceffu was owned by CZ, who is not U.S.-based.

Ceffu published a declaration on its site on Sept. 15 challenging an SEC claim in a Sept. 14 court filing that connected it to Binance.US. Ceffu specified that it supplies services “in choose jurisdictions, omitting the United States, amongst others.”

Related: SEC sees momentary obstacle in demand to gainaccessto Binance.US softwareapplication

However, a Binance.US file entitled “Binance.US Digital Asset & Custody Operations Policy” that was marked “Confidential” and sent to the court on Sept. 15, in a area entitled “Systems. Overview,” it mentioned:

“We license wallet custody softwareapplication and assistance services from Ceffu (previously Binance Holdings Limited). […] The Ceffu service makes up a bulk of our wallet innovation.”

Binance introduced Binance Custody in2021 Ceffu was lateron rebranded from Binance Custody. In March, a Binance representative informed Cointelegraph that Ceffu was its “independent institutional custody partner.”

In its Sept. 18 court filing, the SEC referred to Ceffu as a “mysterious Binance-related entity” and pointed out that Binance.US hasactually been irregular in its descriptions of its relationship with Ceffu in its negotiations with the firm. “It is more than mostlikely that BAM still doesn’t comprehend what Ceffu is,” the SEC specified.

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