1. BITBILIHome
  2. Article

CZ Zhao defends Binance.US amidst SEC’s ‘Ceffu’ controversy

• 153 views

TL;DR Breakdown

  • SEC and Binance.US face increasing tensions over regulatory concerns.
  • Allegations suggest Binance.US exposed customers to foreign business risks via an affiliated custody unit.
  • CEO Changpeng “CZ” Zhao refutes any ties between ‘Ceffu’ or Binance Custody and Binance US.

Description

Tensions are rising in the Securities and Exchange Commission (SEC) and crypto exchange Binance. The Allegations is that Binance.US, a subsidiary of the global entity, exposed customers to potential foreign business risks through a supposedly affiliated custody unit. Binance’s charismatic CEO, Changpeng “CZ” Zhao, doesn’t mince words. Responding to the claims, he fervently clarified that … Read more

Tensions are rising in the Securities and Exchange Commission (SEC) and crypto exchange Binance. The Allegations is that Binance.US, a subsidiary of the global entity, exposed customers to potential foreign business risks through a supposedly affiliated custody unit.

Binance’s charismatic CEO, Changpeng “CZ” Zhao, doesn’t mince words. Responding to the claims, he fervently clarified that neither ‘Ceffu’ nor Binance Custody are associated with Binance US. On the widely followed social network that recently surpassed Twitter in popularity, Zhao asserted, “You can’t just make this stuff up.”

The SEC, however, is not easily appeased. Their primary concern revolves around ‘Ceffu,’ which they perceive as a “newly rebranded Binance Entity” responsible for holding client funds. Per a recent consent order, Binance’s US-based arm, BAM, is not authorized to employ a “foreign Binance affiliated third-party for wallet custody services.” The regulator’s radar is keenly focused on this point, pressing for more information about the safety of user funds on Binance.US.

Adding to the intrigue, court documents revealed that BAM deploys a wallet custody software designed by Binance Holdings Limited. To make matters more perplexing, BAM referred to this software as ‘Ceffu’ during communications with the SEC. BAM’s defense? It was merely a shorthand reference due to the need for an official name for the software. This sentiment was echoed by BAM’s legal team, who argued that referencing ‘Ceffu’ resulted from a terminology mix-up concerning the unbranded software.

Despite these clarifications, the SEC still needs to be convinced as it argues that BAM’s statements concerning ‘Ceffu’ and Binance’s involvement have been inconsistent.

In a hearing held in Washington, DC, the judicial bench seemed eager for a resolution. The presiding judge urged the SEC and BAM to find a middle ground, hinting at needing to “turn down the temperature.”

This isn’t the first time Binance has locked horns with the SEC. The regulatory body filed charges against the exchange and Zhao earlier in June. The severe accusations pointed to potential violations of multiple federal securities laws. At the heart of the matter was an alleged misrepresentation about who supervised the Binance.US platform.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

文章来源于互联网:CZ Zhao defends Binance.US amidst SEC’s ‘Ceffu’ controversy

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年9月20日 20:03
Next 2023年9月20日 22:50

Related articles

  • Web3 marketers shift focus to Middle East and North Africa – Here’s why

    TL;DR Breakdown Due to increased digital payments, developing crypto infrastructure, and the emerging role of CBDCs, the MENA area offers numerous potential for crypto Web3 marketers. The region’s transition toward digital transactions and super-app growth provides a broad canvas for novel consumer engagement and retention techniques. Exploring CBDCs by 86% of global central banks could transform digital finance and give marketers a larger, more technologically aware audience. Description As more and more crypto Web3 marketers turn their attention to the Middle East and North Africa (MENA) areas, the fintech industry is undergoing a fascinating transition. This tactic is not chosen at random. It is supported by three crucial elements: the rise of digital payments, the development of the crypto infrastructure, and the new … Read more As more and more crypto Web3 marketers turn their attention to the Middle East and North Africa (MENA) areas, the fintech industry is undergoing a fascinating transition. This tactic is not chosen at random. It is supported by three crucial elements: the rise of digital payments, the development of the crypto infrastructure, and the…

    Article 2023年7月2日

  • IMF and G20 unveil coordinated roadmap to regulate crypto assets

    TL;DR Breakdown The IMF and Financial Stability Board under G20 leadership have released a joint policy paper outlining a coordinated approach to regulate cryptoassets, aiming to mitigate global financial risks. The paper emphasizes the need for comprehensive regulation and suggests targeted, temporary restrictions as more effective than blanket bans, particularly for emerging economies. The roadmap also addresses the risks posed by the proliferation of stablecoins and calls for clear tax treatment and application of existing laws to the crypto sector. Description The International Monetary Fund (IMF) and the G20’s Financial Stability Board (FSB) have released a joint paper outlining a coordinated approach to regulating crypto assets. However, the paper aims to mitigate the risks posed by cryptoassets to global financial stability and will be presented at the upcoming G20 summit in New Delhi. A comprehensive regulatory … Read more The International Monetary Fund (IMF) and the G20’s Financial Stability Board (FSB) have released a joint paper outlining a coordinated approach to regulating crypto assets. However, the paper aims to mitigate the risks posed by cryptoassets to global financial stability and…

    Article 2023年9月7日

  • UBS completes takeover of Credit Suisse, imposing stricter regulations

    TL;DR Breakdown UBS completes its emergency takeover of Credit Suisse, creating a Swiss banking giant with a $1.6 trillion balance sheet. Stricter regulations, known as “red lines,” are imposed by UBS to mitigate risk and protect against inheriting Credit Suisse’s relaxed approach to risk management. The “red lines” cover operational and non-operational risks, limiting financial products, requiring approval for large loans, and imposing restrictions on dealings with high-risk countries. The merger presents growth opportunities but also challenges in retaining staff and customers. UBS has successfully concluded its emergency acquisition of troubled local rival Credit Suisse, establishing a colossal Swiss bank with a balance sheet worth $1.6 trillion. The merger is the largest banking deal since the 2008 global financial crisis, positioning UBS as a dominant force in wealth management and offering numerous opportunities for clients, employees, shareholders, and Switzerland. UBS Chief Executive Sergio Ermotti and Chairman Colm Kelleher announced the completion of the takeover, acknowledging the challenges that lie ahead and highlighting the potential opportunities for all stakeholders involved. With a combined total of $5 trillion in assets, UBS gains…

    Article 2023年6月15日

  • Shibarium Network Resumes Operations: A Deep Dive into the Recent Halt

    TL;DR Breakdown Shiba Inu’s Layer-2 Shibarium network temporarily halted block production due to overwhelming traffic but resumed operations with enhanced scaling measures. The market reacted with a significant selloff of SHIB, BONE, and LEASH tokens, but prices began to rebound as the network stabilized and the team took proactive steps. Description The cryptocurrency world is no stranger to volatility and unexpected events. The recent hiccup in the operations of Shiba Inu’s Layer-2 Shibarium network is a testament to this. After a brief pause in block production, Shibarium is back, and the market is reacting. Here’s a comprehensive look at what transpired, the reasons behind it, and … Read more The cryptocurrency world is no stranger to volatility and unexpected events. The recent hiccup in the operations of Shiba Inu’s Layer-2 Shibarium network is a testament to this. After a brief pause in block production, Shibarium is back, and the market is reacting. Here’s a comprehensive look at what transpired, the reasons behind it, and the subsequent market response. Contents hide 1 The Unanticipated Halt: What Happened to Shibarium? 2 Addressing…

    Article 2023年8月19日

  • Mark Cuban’s MetaMask wallet drained  nearly $900,000 in suspected phishing attack

    TL;DR Breakdown Mark Cuban has reportedly fallen victim to a phishing attack, resulting in the theft of nearly $900,000. The incident was brought to light by popular crypto investigator WazzCrypto, who noticed unusual activity associated with a MetaMask wallet linked to Mark Cuban. One notable event was a $2 million transfer of USDC. Description Dallas Mavericks owner and prominent US investor Mark Cuban has reportedly fallen victim to a phishing attack, resulting in the theft of nearly $900,000 from one of his MetaMask wallets. The incident has raised concerns about the security of cryptocurrency assets. Suspicious activity detected The incident was brought to light by popular crypto investigator WazzCrypto, … Read more Dallas Mavericks owner and prominent US investor Mark Cuban has reportedly fallen victim to a phishing attack, resulting in the theft of nearly $900,000 from one of his MetaMask wallets. The incident has raised concerns about the security of cryptocurrency assets. Suspicious activity detected The incident was brought to light by popular crypto investigator WazzCrypto, who noticed unusual activity associated with a MetaMask wallet linked to Mark Cuban….

    Article 2023年9月16日
TOP