binance-p2p">Binance CEO Changpeng “CZ” Zhao has responded to recent allegations from the US Securities and Exchange Commission (SEC) about a possible connection between wallet provider Ceffu and Binance’s partner BAM.
On Today, CZ stated on Twitter: “I want to clarify that Binance US has never utilized Ceffu or Binance Custody. These claims are unfounded.”
The SEC has expressed suspicion that Ceffu may have control over customer assets, entangling it in the ongoing legal dispute between the regulator and Binance.
The SEC also requested more information from BAM in a September 18th court filing, part of its motion to compel BAM to comply. So far, BAM has not complied.
In the filing, the SEC claimed Ceffu is indeed tied to Binance.US, contradicting Binance’s previous court statements denying any Ceffu connection.
Meanwhile, Binance.US argues the SEC’s demands are overly broad and burdensome. The SEC’s redacted filing contends BAM’s request for a protective order lacks merit, urging the court to deny it.
BAM requested the order on August 14th, calling the investigation a “fishing expedition.” The back-and-forth has increased tensions as Binance seeks to limit the SEC’s actions through legal means.
On Monday, Judge Zia Faruqui encouraged both parties to cooperate, stemming from the SEC’s request for more info on Binance.US customer assets. He asked them to set aside disagreements and find a resolution.
The rocky relationship dates back to June, when the SEC sued Binance for allegedly trading unregistered securities. According to SEC Chair Gary Gensler, Binance engaged in deceptive practices that violated US securities laws.
