The Ongoing Drama Between Binance.US and the SEC
It seems like the saga between Binance.US and the SEC has more twists and turns than a soap opera! Recently, a judge hit the brakes on the SEC’s demands to snoop around Binance.US’s software. Binance CEO Changpeng Zhao, affectionately known as CZ, took to X (formerly Twitter, because we’re all in a rebranding phase, apparently) to clear the air about a controversial topic: Ceffu.
CZ’s Twitter Defense: “We Didn’t Use Ceffu!”
CZ dropped a bombshell on September 19, assuring everyone that Binance.US has never utilized Ceffu or Binance Custody. So, just to be clear, if you’re planning to write a conspiracy novel, you might want to consider a different angle. What he tweeted was, “For the record. Binance US does not use, and have NEVER used Ceffu or Binance Custody. You can’t just make this stuff up.” Perhaps he should have added, “Cue dramatic music!”
The SEC’s Concerns: Ceffu’s Role in the Cosmos
The SEC is investigating the role Ceffu plays in the Binance ecosystem, which has earned it a reputation as a “mysterious Binance-related entity.” According to a consent order from June, U.S. employees at BAM Trading (the holding company for Binance.US) were supposed to maintain control over customer fiat and crypto assets—something that really gets regulatory hearts pumping!
Lost in Translation: The Ceffu Confusion
Now, let’s dive into the murky waters of Ceffu’s identity. Initially known as Binance Custody, then rebranded to Ceffu, it seems the SEC is having a tough time pinning down its relationship with Binance. A confidential document from Binance.US indeed acknowledges that they “license wallet custody software and support services from Ceffu.” But hold onto your hats! The SEC claims that BAM might not fully grasp what Ceffu even is. Eek!
Peek Behind the Curtains: What Ceffu Says
On September 15, Ceffu stepped up to the plate and posted a statement on its website denying any ties with Binance.US in response to the SEC claims. Ceffu insisted it operates “in select jurisdictions, excluding the United States.” So, now we have a riddle: if Ceffu isn’t in the U.S., how is it a problem for Binance.US? Better call Sherlock Holmes!
The Plot Thickens: Is There More to the Story?
As if this wasn’t enough, CZ tried to clarify his literal wordplay by noting that Ceffu was once called “BHL Wallet Solution” and was associated with Binance Holdings Limited. However, a popular crypto analyst responded with a tweet noting that the company’s lawyers had actually admitted to this transition. So, the question remains—who’s on first?
Final Words: Holding Our Breath
As we watch this crypto drama unfold, many are left wondering what will happen next. Will the SEC and Binance reach a truce, or are we in for more episodes in this gripping series? One thing’s for sure: they could use a solid PR team!
