Binance CEO Denies SEC Allegations and Refutes Any Connections Between Binance.US and Ceffu

Binance CEO and co-founder Changpeng Zhao

Binance’s CEO, Changpeng Zhao, went on Twitter to deny any links between Binance.US and a crypto custodian called Ceffu. This denial came after a U.S. court refused to let the Securities and Exchange Commission (SEC) inspect Binance in a lawsuit. According to Zhao, Binance.US has never used Ceffu’s services. The SEC is investigating various things, including alleged misuse of customer funds by Binance.

The SEC filed a claim on September 18, stating that Binance.US was unclear about its relationship with Ceffu and might not understand what Ceffu is. Ceffu had also recently denied claims of ties with Binance.US, stating that it provides custodian services only in certain places, not in the U.S.

Binance.US’s legal team confirmed that Zhao received a $250 million loan from BAM Management U.S. Holdings. The SEC alleges that Zhao moved these funds to BAM Trading and accuses him of lending himself money using customer funds. The SEC claims Binance.US is not cooperating with the investigation, while Binance.US argues that the SEC’s requests are excessive.

Some in the crypto community are drawing parallels between Binance’s situation and that of FTX and Alameda, raising concerns about a potential collapse.

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Chi Do
Chi Do
Chi Do is a content writer at CoinMinutes, responsible for creating most of the content on the website, including news related to Bitcoin (BTC), Ethereum (ETH), Blockchain, Decentralized Finance (DeFi), and more. With a keen interest in cryptocurrencies since the 2020s, Chi has acquired extensive experience and knowledge in this field. Chi holds a Bachelor's degree in communication from Academy of Journalism and Communication in Vietnam.

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