In a recent and rather unsettling development, the founder and CEO of Binance, Changpeng “CZ” Zhao, firmly denied previous claims made by Binance.US regarding the use of custody software initially developed by Binance Holdings Limited and later rebranded as Ceffu. This denial, articulated in a post on the social network X, contradicts Binance.US’s previous legal claims, revealing a tangled web of conflicting narratives at the heart of a Securities and Exchange Commission (SEC) investigation.
The SEC investigation deepens: The role of Binance custody and Ceffu
Binance.US, identified in court documents as BAM, had previously acknowledged the use of the wallet custody software developed by Binance Holdings Limited (BHL) to manage a significant portion of its clients’ assets. This software was later marketed as ‘Ceffu‘, a term that BAM adopted for reference in correspondence with the SEC. Contrary to CZ’s assertions, official documents submitted to the court and the SEC clearly indicate that BAM licensed the software and support services from Ceffu, which was originally BHL.
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“We license wallet custody software and support services from Ceffu (formerly Binance Holdings Limited).”
A gray area: The operational connections of Ceffu
The unclear relationship between Ceffu, formerly known as Binance Custody, and Binance.US further adds to the complexity of the situation. Despite Ceffu’s denial last week regarding any operational presence in the United States or provision of services to Binance.US, evidence presented by the SEC indicates a deeper connection. An analysis of Ceffu’s website data reveals affiliations with Binance entities based in Ireland and Singapore, although references to Binance were purged during a recent website update.
