Connect with us

Hi, what are you looking for?


Binance CEO Rejects SEC’s Allegation Regarding Wallet Provider Ceffu

Binance CEO Changpeng “CZ” Zhao has responded to allegations the US Securities and Exchange Commission (SEC) raised regarding Binance.US’s association with wallet provider Ceffu.

The SEC has expressed suspicions that the wallet might be linked to Binance’s partner company, BAM.

On Tuesday, Zhao refuted these claims on X (formerly known as Twitter), stating: “I want to clarify that Binance US has never utilized Ceffu or Binance Custody. These claims are unfounded.”

Ceffu has become entangled in the ongoing dispute between the SEC and Binance, with the regulatory body suspecting it may have control over customer assets.

Additionally, the SEC requested further information from BAM, as mentioned submitted on September 18 in its motion to compel BAM. However, at press time, BAM has not complied with this request.

In the filing, the SEC claimed that the wallet provider is indeed linked to Binance.US. This contradicts the crypto company’s prior assertions in court documents that Ceffu had no connection to them.

Meanwhile, Binance.US has argued that the SEC’s are excessively broad and unduly burdensome, as stated in its unsealed document on Monday.

The redacted filing by the SEC also argued that BAM’s request for a protective order against the SEC investigation lacks merit and urged the court to deny the request.

BAM on August 14 in the US District Court for the District of Columbia. It characterized the SEC’s investigation as a “fishing expedition” – an attempt to find incriminating evidence without saying the purpose of the search.

The ongoing exchanges have heightened tensions between the two parties in recent weeks as Binance seeks to limit the SEC’s investigative actions through court intervention.

However, Judge Zia Faruqui, on Monday, encouraged Binance Holdings Limited and the SEC to cooperate on the lawsuit. This request stemmed from the SEC’s quest for additional information concerning customer assets at .

During the hearing, Judge Faruqui implored both parties to set aside past disagreements and strive for a resolution.

To that effect, the SEC and BAM have agreed to a hearing on October 12 and are expected to submit a joint status on October 10.

Binance’s Stormy Relationship With the SEC

On June 5, the SEC initiated legal proceedings against Binance, alleging that the exchange had traded unregistered securities.

In a detailed 136-page legal document, the SEC made a series of allegations against Binance and its founder, Changpeng “CZ” Zhao.

The document disclosed their purported involvement in a complex scheme encompassing fraud, conflicts of interest, a lack of transparency, and a deliberate disregard for legal regulations.

According to SEC Chair Gary Gensler, the accusations revolved around deceptive practices intended to mislead investors.

These practices include risk management issues, trade volume manipulation, concealing vital operational information, and violations of US securities laws.

This post appeared first on

You May Also Like

Editor's Pick

Real gross domestic product rose at a revised 3.2 percent annualized rate in the third quarter versus a 0.6 percent rate of decline in...

Editor's Pick

In Risky Business: Why Insurance Markets Fail and What to Do About It (Yale University Press, 2023), economists Liran Einav (Stanford), Amy Finkelstein (MIT),...

Editor's Pick

After the final lecture of my Fall 2022 International Economic Policy course (an undergraduate offering meant to introduce non-economics majors to the economics of...

Editor's Pick

For years the North Korean playbook was obvious to the world. The Democratic People’s Republic of Korea wanted to be the center of attention....

Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2023