Binance CEO CZ was quick to respond to the SEC’s controversial claims. Sharing on social media, CZ said, “You can’t just make these up.” He made his reproach with the following statements.
“You can’t just make it up”
Binance CEO Changpeng Zhao has disputed the Securities and Exchange Commission’s allegations that Binance.US uses a custodian affiliated with its parent company that could expose customers to a foreign entity.
Sharing on his social media account, CZ said, “Binance US does not use Ceffu or Binance Custody and has never used it.” “You can’t just make these up.” he said.
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
What happened?
Ceffu has been a point of contention between the SEC and Binance, with the regulator asking BAM, the company behind Binance.US, for more information about how customer assets are handled on Binance.US. The company described most requests for more information as too broad or burdensome and said BAM had failed to comply.
The SEC had specifically requested more information about Ceffu, which the agency said was a “newly rebranded Binance Entity” that appeared to control client assets. The agency had also stated that BAM was not allowed to use a “foreign Binance-affiliated third party for wallet custody services” under the consent order.
A lawyer for the SEC emphasized that BAM had made “inconsistent statements about Ceffu and Binance’s involvement.”
In a court filing last week, BAM said it relied on a wallet custody software developed by Binance Holdings Limited to protect the wallets that hold most of customers’ assets.
“Accordingly, when BAM learned that BHL planned to market the software commercially under the name ‘Ceffu,’ it adopted that name as an abbreviated reference to the software, including in correspondence with the SEC,” BAM’s Sept. 12 court filing said. He used the following expressions:
