The SEC is demanding a thorough inspection of Binance.US. and their seemingly evasive behavior and reluctance to hand over crucial documents. 🤔
Just a few months ago, the SEC threw the book at Binance.US, its global parent, Binance Holdings, and founder Changpeng “CZ” Zhao. Now, the SEC is doubling down, emphasizing the “urgent need” for a deep dive into Binance’s dealings, especially their questionable use of the custody platform Ceffu (once known as Binance Custody).
The SEC suspects some sneaky business, hinting that Ceffu might be helping Binance.US move U.S. customer funds overseas, a big no-no based on prior agreements. The root of the issue? Binance.US’s parent company, BAM Trading Services, couldn’t convince the SEC that they had full control over customer assets. 😒
The SEC’s not buying BAM’s “evolving” tales about Ceffu and is calling out the company for its inconsistent stories and dragging its feet on document production. They’re urging the court to force the exchange to provide the requested depositions and communications.
While Ceffu insists it’s an independent entity and not tied to Binance, the real relationship remains murky at best. 🤷♂️