Last night, the hearing of the ongoing case between Binance, the world's largest cryptocurrency exchange, and the SEC was held.
A statement came from Binance CEO CZ regarding the Ceffu-Binance Custody debate, which is one of the issues discussed in this case.
In his post, CZ touched on the discussions regarding Ceffu and rejected the allegations that Binance's US branch has a connection with the organization known as Ceffu.
CZ included the following statements in his post:
“To note, Binance US does not use and NEVER did use Ceffu or Binance Custody. You can't just make this stuff up.”
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
As it is known, Binance Custody, a wallet service, was rebranded as Ceffu.
The SEC alleges in the lawsuit that Binance US used custody software, possibly affiliated with its parent company BAM, that could have exposed customers to a foreign entity, and is seeking more information from BAM about how customer assets on Binance.US are handled.
While Binance US describes these demands of the SEC as too broad or burdensome, the SEC says that Binance US and its parent company BAM have not fulfilled these demands.
At this point, the SEC argues that there is a possibility that the assets of Binance US's US customers are stored in the same place as the global exchange.
Apart from this, Binnace Custody, which has been rebranded as Ceffu, denied in its statement in recent weeks that it provides services to Binance US or BAM or operates in the USA.
*This is not investment advice.