In a recent development, the US Securities and Exchange Commission (SEC) has intensified its legal offensive against Binance.US. In a severe filing on Monday, the regulatory agency urged a D.C. court to grant approval for a thorough inspection of Binance.US operations, reiterating concerns over potential violations involving the custody platform Ceffu.
Divergences and Delays: A Closer Look at Ceffu’s Involvement
Ceffu, which was rebranded earlier this year as Binance Custody, is suspected of facilitating the illicit transfer of funds from US customers abroad, thereby violating previous agreements. The SEC is deeply concerned about the unclear relationship between Ceffu and Binance.US and is seeking judicial authorization to compel BAM to release documents and communications regarding any entity providing it with wallet custody software and associated services.
The legal document also mentions that the exchange made ‘inconsistent representations on key facts’ and deliberately delayed the submission of crucial information that could potentially shed light on the veracity of their asset custody claims.
The SEC Questions Changpeng ‘CZ’ Zhao’s Claim of Jurisdiction
The SEC filing does not refrain from highlighting inconsistencies in BAM’s narratives regarding Ceffu’s functionalities and control over client assets. Furthermore, it unequivocally criticizes CZ, characterizing him as an individual who sees himself as beyond the jurisdiction of any judicial entity. The regulator fervently requests the court to dismiss Binance’s objections and to order the exchange to comply with information requests to clarify these pressing matters.
As the situation escalates, a hearing is scheduled for later on Monday, promising further revelations…