“It is more than likely that BAM still doesn’t understand what Ceffu is,” the SEC stated after trying to untangle the web of relationships between entities.
After a judge declined to give the United States Securities and Exchange Commission (SEC) unfettered access to Binance.US software at a hearing on Sept. 18, Binance CEO Changpeng Zhao (CZ) took to X (formerly Twitter) to make a statement about one point of contention with the 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.” CZ said in a Sept. 19 post. CZ’s statements did not make the record any clearer.
The role Ceffu played in the Binance.US ecosystem has been a concern for the SEC because Binance.US has agreed to the SEC’s June 17 consent order, which stated:
So @cz_binance trying to claim Binance US never used "Ceffu" because at the time the agreement was signed, Ceffu was called "BHL Wallet Solution" & the entity was Binance Holdings Limited, which later became Ceffu.
But he also forgets, his own lawyers also admitted the new… pic.twitter.com/373LEiNuaD
— Adam Cochran (adamscochran.eth) (@adamscochran) September 19, 2023
In its Sept. 18 court filing, the SEC referred to Ceffu as a “mysterious Binance-related entity” and pointed out that Binance.US has been inconsistent in its descriptions of its relationship with Ceffu in its dealings with the agency. “It is more than likely that BAM still doesn’t understand what Ceffu is,” the SEC stated.