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Changpeng Zhao disagrees with the SEC’s arguments

September 19, 2023
5:49 PM

Binance CEO Changpeng Zhao (CZ) said that the US division of the exchange has never used the Ceffu custody service, which was previously called Binance Custody, contrary to allegations SEC.

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

“You can’t just make things up,” CZ told the regulator.

On September 18, the SEC filed a redacted document in court against the crypto exchange’s defense motion, in which it again raised questions about Ceffu. The agency suspects the platform of “possibly managing” Binance.US client assets, which violates previous agreements.

“The limited investigation that the SEC has been able to conduct to date demonstrates the urgent need for scrutiny. The court must order an examination,” the appeal states.

Previously, the SEC accused Binance.US of being unwilling to cooperate in the disclosure of information. According to the department, the holding company of the exchange, BAM, delayed the preparation of the requested documents.

The court refused to oblige the US subsidiary of Binance to provide the SEC with expanded information regarding the processing of client assets. The company itself called the regulator’s requests “too broad” and “unreasonably burdensome.”

According to Commission testimony, BAM represented that Binance was “a simple third-party provider whose wallet software services are similar to an Internet service provider.”

“However, Binance and BAM are far from just harmless service providers, because they are jointly owned by another defendant in this lawsuit, a person who considers himself beyond the jurisdiction of any court,” the SEC emphasized, likely referring to CZ.

The regulator is also seeking testimony from former Binance.US CEO Brian Schroeder and other top executives. Binance.US objected, saying their testimony would “harm BAM’s business.”

Schroeder’s departure became known on September 13. Following him, the head of the legal department, Krishna Juvvadi, and the head of the risk department, Sidney Majalya, left the company.

In September, the daily trading volume on the platform dropped to $2.97 million. For example, on September 16, the figure was $5.1 million versus $230 million a year ago.

On June 5, the SEC filed a lawsuit against Binance and Changpeng Zhao, bringing 13 charges, including the sale of unregistered securities.

Source: Cryptocurrency

David

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.