Read

<p class="is-style-lead">The U.S. Securities and Exchange Commission (SEC) and Binance.US, operated by BAM, are embroiled in a <a href="https://crypto.news/garlinghouse-asserts-xrps-position-amid-sec-legal-tangle/" data-type="post" data-id="14186132">legal dispute</a> concerning the handling and custody of customer assets, with both parties scheduled for a crucial hearing on Oct. 12.</p> 
<p>At the heart of the conflict is a mysterious entity known as “Ceffu,” which the SEC argues is a “newly rebranded Binance Entity” implicated in the custody of customer assets. However, Changpeng “CZ” Zhao, CEO of Binance, sharply refuted these claims, stating, “For the record. Binance US does not use, and have NEVER used Ceffu or Binance Custody. You can’t just make this stuff up.”</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">For the record. Binance US does not use, and have NEVER used Ceffu or Binance Custody.<br><br>You can't just make this stuff up. 🤷‍♂️ <a href="https://t.co/JIkIVTf8tc" target="_blank">https://t.co/JIkIVTf8tc</a></p>— CZ 🔶 Binance (@cz_binance) <a href="https://twitter.com/cz_binance/status/1704116090089968082?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">September 19, 2023</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
<p>The SEC’s engagement with BAM is part of its broader effort to regulate crypto exchanges and ensure compliance with federal securities laws. The commission has specifically asked for more information on how Binance.US handles its customer assets, a request which BAM has resisted on grounds that it is “too broad or burdensome.”</p> 
<p>While the SEC is insisting on transparency around Ceffu, it also emphasizes that BAM is “not allowed to use a foreign Binance affiliated third-party for wallet custody services,” according to a <a href="https://storage.courtlistener.com/recap/gov.uscourts.dcd.256060/gov.uscourts.dcd.256060.114.2.pdf" data-type="link" data-id="https://storage.courtlistener.com/recap/gov.uscourts.dcd.256060/gov.uscourts.dcd.256060.114.2.pdf" target="_blank" rel="noopener">consent order</a>.</p> 
<p> You might also like: <a href="https://crypto.news/binance-faces-increased-sec-scrutiny-as-executives-depart/"> Binance faces increased SEC scrutiny as executives depart </a> </p> 
<p>A lawyer for the SEC pointed out that BAM has made “inconsistent statements about Ceffu’s and Binance’s involvement,” further heating the regulatory landscape for the exchange.</p> 
<p>This escalating dispute recently caught the attention of a D.C. district judge, who asked both parties to “turn down the temperature” during a Monday hearing. He proposed that both parties work collaboratively toward resolving their differences ahead of an Oct. 12 hearing. Additionally, the judge instructed them to submit a joint status report by Oct. 10.</p> 
<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio">
 <div class="wp-block-embed__wrapper"> <iframe title="CZ Denies Binance.US Used Ceffu or Binance Custody in Apparent Contradiction" width="1020" height="574" src="https://www.youtube.com/embed/QAJsjjaKrPc?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe> 
 </div>
</figure> 
<p>The SEC <a href="https://crypto.news/sec-sues-binance-and-cz-for-securities-violations/" data-type="link" data-id="https://crypto.news/sec-sues-binance-and-cz-for-securities-violations/">initially sued</a> Binance and Zhao back in June for allegedly “violating multiple federal securities laws” and misrepresenting the oversight of the Binance.US platform.</p> 
<p>The pending hearing and forthcoming joint status report will potentially serve as pivotal moments that could shape the future regulatory environment for Binance.US, as well as other cryptocurrency exchanges operating within the U.S.</p> 
<p> Read more: <a href="https://crypto.news/is-binance-in-trouble/"> Is Binance in trouble? </a> </p>

SEC and Binance.US in legal dispute over customer asset management

crypto.news

Ďalšie články zverejnené 19. 9. 2023

Ethereum Price Witnesses Brief Uptick as Crypto Market Recovers

Malta Embraces EU's MICA Regulations: Public Consultation Open Until Sept. 29

Binance faces increased SEC scrutiny as executives depart

UK parliament to pass crypto bill against financial crimes

Hester Peirce believes crypto businesses shouldn’t lose up on the US despite the SEC being involv...

Coinbase to begin new campaign to advance US legislation

Pripojte sa k nášmu bezplatnému bulletinu a získajte denné aktualizácie kryptomien!