The SEC’s access to Binance.US software is restricted, escalating the dispute as CZ responds on social media, while Ceffu’s role remains enigmatic.
In a recent courtroom showdown, a federal judge denied the United States Securities and Exchange Commission (SEC) unrestricted access to Binance.US’s software. This decision, handed down on September 18, has intensified the ongoing dispute between the SEC and Binance, prompting Binance CEO Changpeng Zhao (CZ) to take to X (formerly Twitter) to address a key point of contention.
The primary concern revolves around the role of Ceffu within the Binance.US ecosystem. Binance.US had previously agreed to comply with the SEC’s June 17 consent order, which explicitly stated,
“For the avoidance of doubt, U.S.-based personnel for BAM Trading and BAM Management will have complete control over Customer Fiat Assets and Customer Crypto Assets.”
BAM stands as the holding company for Binance.US, and a 2022 corporate filing reported by Bloomberg indicated that CZ, who is not based in the United States, owned the company responsible for Ceffu.
Ceffu’s Defiant Response To SEC Linkage Allegations
On September 15, Ceffu released a statement on its website, refuting the SEC’s claim in a September 14 court filing that linked Ceffu to Binance.US. Ceffu clarified that it offers services “in select jurisdictions, excluding the United States, among others.”
However, a confidential document submitted to the court on September 15, titled “Binance.US Digital Asset & Custody Operations Policy,” revealed a different perspective. In this document, it was disclosed that Binance.US licensed wallet custody software and support services from Ceffu, which was formerly known as Binance Holdings Limited. The document also indicated that Ceffu provided most of Binance.US’s wallet technology.
Binance introduced Binance Custody in 2021, later rebranding as Ceffu. In March, a Binance spokesperson clarified that Ceffu was their “independent institutional custody partner.”
In the September 18 court filing, Ceffu was called a “mysterious Binance-related entity.” The SEC also highlighted Binance.US’s inconsistent descriptions of its relationship with Ceffu in dealings with the regulatory agency, suggesting that there may still be significant confusion within Binance.US regarding Ceffu’s role.
As the legal battle between Binance.US and the SEC continues, the cryptocurrency community watches closely, eager to see how this dispute will impact the future of Binance’s operations in the United States.