The head of the largest crypto exchange Binance, Changpeng Zhao, was caught in a lie. Authors of the microblog WhaleWire noticed on the discrepancy between the businessman’s testimony and what his lawyer says.
Zhao claims that the American division of the crypto exchange did not use Ceffu, a platform that was formerly called Binance Custody. According to project representatives, the platform provides institutional clients with tools for storing digital assets. Despite the rebranding, control of Ceffu is still in the hands of Binance.
Screenshot of WhaleWire message. Source: “Twitter»
Regulators believe that using the platform, Zhao could conduct transactions that violate US laws. The businessman himself claims that the American division has never used the services of Ceffu.
However, court documents prepared by Zhao’s lawyer indicate the opposite information. It follows from them that the American division of the crypto exchange used the services of Ceffu.
The crypto exchange came under the radar of the US Securities and Exchange Commission (SEC) in June 2023. The regulator accuses the trading platform of illegally providing American clients with access to prohibited instruments.
The fact is that Binance launched an American “daughter” – Binance.US – precisely in order to comply with the requirements of US regulatory authorities. American regulators believe that in fact the new division of the crypto exchange only created the appearance of legitimate work.
Source: Cryptocurrency
I am an experienced journalist and writer with a career in the news industry. My focus is on covering Top News stories for World Stock Market, where I provide comprehensive analysis and commentary on markets around the world. I have expertise in writing both long-form articles and shorter pieces that deliver timely, relevant updates to readers.
