Binance CEO Changpeng Zhao used Twitter to deny the claimed ties between Binance. US and crypto custodian Ceffu, during a legal fight with the SEC. This happens soon after something in the U. S The court said no to the SEC’s request to check Binance in their case against them.
Changpeng Zhao, also called “CZ,” talked about the claims that Binance. US is connected to Ceffu in a tweet. In his statement, CZ strongly denied that Binance. US has ever used the services of Ceffu, which used to be called Binance Custody. The SEC is looking into whether Binance. US and Ceffu are connected, as part of their investigation into Binance’s alleged bad behavior, like taking money from customers and breaking securities laws.
The SEC noticed that Binance. US did not explain its relationship with Ceffu correctly in a filing on September 18th. The regulator wasn’t sure if the company really understood its connection with Ceffu. This argument about how they are connected makes the fight between Binance and the SEC more complicated.
Interestingly, Ceffu had said a week earlier that it did not have any connection to Binance. US, despite the SEC saying otherwise. Ceffu takes care of people’s money in some places, but not in the United States. Ceffu is trying to explain its relationship with Binance. US to clear up any confusion and help with the investigation.
Accusations against Binance.
The SEC says that Changpeng Zhao borrowed $250 million from BAM Management U. S Holdings, a company connected to him. It is said that after getting the money, Zhao then moved it to BAM Trading. These claims are similar to previous accusations made by a popular cryptocurrency account, saying that Zhao borrowed money from customer funds for himself.
The SEC said Binance. US did not help with the investigation, and did not give the documents and information needed. However,US has described the SEC’s requests for documents as a “fishing expedition” and going too far, suggesting that they are asking for too much.
The recent events involving Binance and the SEC are being compared to what FTX and Alameda did. This has made people in the cryptocurrency community worried that there might be a big problem. This means that the cryptocurrency industry is being watched more closely by regulators. They are making sure that exchanges and other related companies are being responsible for what they do.
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