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.
According to recent SEC filings, upon receiving the funds, Zhao transferred them to BAM Trading.