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Changpeng Zhao denies Binance.US ever used Ceffu to custody funds, contradicting court filings Changpeng Zhao denies Binance.US ever used Ceffu to custody funds, contradicting court filings

Changpeng Zhao denies Binance.US ever used Ceffu to custody funds, contradicting court filings

The Binance CEO statement contrasts to those made by the firm in several filings in its lawsuit against the SEC.

Changpeng Zhao denies Binance.US ever used Ceffu to custody funds, contradicting court filings

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

Binance CEO Changpeng Zhao (CZ) has denied that its U.S. subsidiary, Binance.US, ever used Ceffu or Binance Custody for custodial services.

Zhao made this statement in response to the Securities and Exchange Commission’s (SEC) request to investigate potential fund movement violations by the embattled subsidiary of his exchange. The financial regulator is investigating Binance.US‘s use of Ceffu, which might be serving the firm and, therefore, being used to transfer U.S. customer funds abroad despite prior agreements.

Meanwhile, this denial contrasts with earlier statements made by Binance.US in court filings, where they acknowledged the use of custody software initially provided by Binance Holdings Ltd, which later rebranded as Binance Custody. These filings and correspondences frequently mentioned Ceffu.

Contradictions

Zhao’s recent denials have sparked concerns and raised questions about the veracity of previous statements, prompting calls for further clarification.

Fund Managerย Adam Cochran noted the discrepancy on X (formerly Twitter), saying that if Zhao is willing to lie about what is in court documents, he might lie about safety or assets.

The ongoing controversy surrounding Binance adds further challenges to the exchange’s efforts in addressing allegations of unregistered exchange operations and listing unregistered securities in the United States. The emergence of Ceffu now becomes another point of contention between the regulatory authorities and the crypto platform.

On its part, BAM, which is the company behind Binance.US, claims that Binance is only a third-party vendor that provides wallet services. However, the SEC argues that the same individual owns Binance and BAM.

The SEC recently pushed forย Binance.US and related companies to produce discovery information in various areas, including the nature of its crypto wallet custody and its relationship with the Ceffu wallet, communications regarding its control over customer assets, and other financial documents.ย 

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