Binance.US CEO Denies Ties with Ceffu Amid SEC Investigation

Binance.US, on the other hand, described the regulator's document requests as "fishing expeditions" and "overboard."

Binance.US CEO Denies Ties with Ceffu Amid SEC Investigation
Binance.US CEO Denies Ties with Ceffu Amid SEC Investigation

Changpeng Zhao, CEO and co-founder of Binance, took to X (Twitter) to deny any ties between Binance.US and cryptocurrency custodian Ceffu.

His post followed a U.S. court’s refusal to grant the United States Securities and Exchange Commission (SEC) an inspection order in its litigation against Binance.

Zhao, per the tweet, mentioned that Binance.US has never utilized Ceffu, formerly known as Binance Custody. The relationship between Binance.US and Ceffu has been added to the SEC’s investigation list.

The regulator asserts that the global cryptocurrency exchange misappropriated customer funds and committed other securities violations.

In a filing dated September 18, the SEC noted that Binance.US had inconsistently described its relationship with Ceffu.

In addition, the regulator stated that it is probable that the corporation “does not know what Ceffu is.”

Ceffu published a statement disputing SEC filing claims that it had connections to Binance.US less than a week ago.

According to the report, Ceffu provides custodial services in certain jurisdictions outside the United States.

Meanwhile, Binance.US’s legal team affirmed that Changpeng Zhao received a $250 million loan from BAM Management U.S. Holdings, another one of his affiliates.

De acuerdo a recent SEC filings, upon receiving the funds, Zhao transferred them to BAM Trading.

The allegations made by the SEC were consistent with previous claims made by a prominent cryptocurrency account that Zhao had loaned himself money using customer funds.

Since making these assertions, the SEC has accused Binance.US of not cooperating with the investigation.

Binance.US, on the other hand, described the regulator’s document requests as “fishing expeditions” and “overboard.”

Some in the cryptocurrency community assert that the company’s actions are comparable to those of FTX and Alameda, causing concerns about a potential collapse.