<![CDATA[<img src="https://cimg.co/news/125212/330768/binance-ceo.jpg" srcset="https://cimg.co/news/125212/330768/responsive-images/binance-ceo___media_library_original_1280_720.jpg 1280w, https://cimg.co/news/125212/330768/responsive-images/binance-ceo___media_library_original_1200_675.jpg 1200w, https://cimg.co/news/125212/330768/responsive-images/binance-ceo___media_library_original_900_506.jpg 900w, https://cimg.co/news/125212/330768/responsive-images/binance-ceo___media_library_original_720_405.jpg 720w, https://cimg.co/news/125212/330768/responsive-images/binance-ceo___media_library_original_600_338.jpg 600w, https://cimg.co/news/125212/330768/responsive-images/binance-ceo___media_library_original_300_169.jpg 300w" width="1280" class="content-img" alt="">Binance CEO Changpeng "CZ" Zhao has responded to allegations the US Securities and Exchange Commission (SEC) raised regarding Binance.US's association with wallet provider Ceffu.The SEC has expressed suspicions that the wallet might be linked to Binance's partner company, BAM.On Tuesday, Zhao refuted these claims on X (formerly known as Twitter), stating: "I want to clarify that Binance US has never utilized Ceffu or Binance Custody. These claims are unfounded."<figure class="media"><oembed url="https://twitter.com/cz_binance/status/1704116090089968082?s=20"></oembed></figure>Ceffu has become entangled in the ongoing dispute between the SEC and Binance, with the regulatory body suspecting it may have control over customer assets.Additionally, the SEC requested further information from BAM, as mentioned&nbsp;<a href="https://storage.courtlistener.com/recap/gov.uscourts.dcd.256060/gov.uscourts.dcd.256060.113.0.pdf">in a court filing&nbsp;</a>submitted on September 18 in its motion to compel BAM. However, at press time, BAM has not complied with this request.In the filing, the SEC claimed that the wallet provider is indeed linked to Binance.US. This contradicts the crypto company's prior assertions in court documents that Ceffu had no connection to them.Meanwhile, Binance.US has argued that the SEC's<a href="https://storage.courtlistener.com/recap/gov.uscourts.dcd.256060/gov.uscourts.dcd.256060.114.6.pdf">&nbsp;document demands</a>&nbsp;are excessively broad and unduly burdensome, as stated in its unsealed document on Monday.The redacted filing by the SEC also argued that BAM's request for a protective order against the SEC investigation lacks merit and urged the court to deny the request.&nbsp;BAM&nbsp;<a href="https://www.courtlistener.com/docket/67474542/95/securities-and-exchange-commission-v-binance-holdings-limited/">made this request</a>&nbsp;on August 14 in the US District Court for the District of Columbia. It characterized the SEC's investigation as a "fishing expedition" &ndash; an attempt to find incriminating evidence without saying the purpose of the search.&nbsp;The ongoing exchanges have heightened tensions between the two parties in recent weeks as Binance seeks to limit the SEC's investigative actions through court intervention.However, Judge Zia Faruqui, on Monday, encouraged Binance Holdings Limited and the SEC to cooperate on the lawsuit. This request stemmed from the SEC's quest for additional information concerning customer assets at <a href="https://cryptonews.com/news/judge-refuses-compel-binanceus-release-documents-requested-by-sec-calls-for-cooperative-approach.htm">Binance.US</a>.During the hearing, Judge Faruqui implored both parties to set aside past disagreements and strive for a resolution.&nbsp;To that effect, the SEC and BAM have agreed to a hearing on October 12 and are expected to submit a joint status on October 10.<h2 id="binance-s-stormy-relationship-with-the-sec">Binance's Stormy Relationship With the SEC&nbsp;</h2>On June 5, the SEC initiated legal proceedings against Binance, alleging that the exchange had traded unregistered securities.<figure class="media"><oembed url="https://twitter.com/SECGov/status/1665779371108335618?s=20"></oembed></figure>In a detailed 136-page legal document, the SEC made a series of allegations against Binance and its founder, Changpeng "CZ" Zhao.&nbsp;The document disclosed their purported involvement in a complex scheme encompassing fraud, conflicts of interest, a lack of transparency, and a deliberate disregard for legal regulations.According to SEC Chair Gary Gensler, the accusations revolved around deceptive practices intended to mislead investors.&nbsp;These practices include risk management issues, trade volume manipulation, concealing vital operational information, and violations of US securities laws.
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Binance CEO Rejects SEC's Allegation Regarding Wallet Provider Ceffu

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