Changpeng “CZ” Zhao, the CEO and
Co-Founder of Binance, has refuted claims that Binance.US utilized custody
software provided by its international counterpart, Binance Holdings Ltd (BHL),
which was later rebranded as Ceffu.
This denial has put CZ at odds with prior statements
made by lawyers representing Binance.US in an ongoing investigation by the SEC.
The SEC is currently embroiled in a probe focused on ensuring that assets held
by the U.S. branch of Binance do not find their way overseas.
In a post on X (formerly Twitter), CZ firmly
asserted, “For the record, Binance.US does not use, and have NEVER used
Ceffu or Binance Custody.” This statement contradicts the narrative put forth
by Binance.US’s legal team, who had previously acknowledged the use of custody
software provided by BHL and marketed as Ceffu, according to a report by
Coindesk.
For the record. Binance US does not use, and have NEVER used Ceffu or Binance Custody.
You can’t just make this stuff up. 🤷♂️ https://t.co/JIkIVTf8tc
— CZ 🔶 Binance (@cz_binance) September 19, 2023
BAM had maintained that they relied on wallet
custody software developed by BHL to manage their customers’ digital assets. In
an attempt to clarify their position, Binance.US even adopted the name ‘Ceffu’
as a shorthand reference for the software when corresponding with the SEC.
However, the SEC has presented documents that appear
to challenge CZ’s claims. While Ceffu has publicly denied providing services to
Binance.US and even claimed not to operate in the United States, the SEC’s
filings suggest otherwise. An August 3 screenshot of the Ceffu website
indicates that Ireland-based Binance Institutional Holdings Limited controlled
the custodian’s trademarks and data. Additionally, it mentions a Singaporean
entity, Binance Institutional SG Pte, as one of its operating arms that support
services from Ceffu.
The legal battle between the SEC and Binance.US took
a new turn this week when the SEC sought
an extensive investigation into the cryptocurrency exchange
