The courtroom tussle between the SEC)and crypto giant Binance has taken a twist. 🌀
The SEC’s bid to inspect Binance.US’s software, seeking potential links to its global counterpart, was shot down by Judge Zia Faruqui. The SEC alleges that Binance.US, claiming to operate separately from Binance, might have skirted American regulations.
Binance.US’s legal team labeled the SEC’s request a “fishing expedition.” Meanwhile, Binance.US’s trading volume has plummeted, with a staggering 98% drop from January 2022 to August 2023. In contrast, Coinbase boasts a daily trading volume of $983 million, overshadowing Binance.US’s $11.2 million.
Adding to the intrigue, Binance CEO, Changpeng Zhao (CZ) clarified on X that Binance.US never used Ceffu or Binance Custody:
For the record. Binance US does not use, and have NEVER used Ceffu or Binance Custody.
You can't just make this stuff up. 🤷♂️ https://t.co/JIkIVTf8tc
— CZ 🔶 Binance (@cz_binance) September 19, 2023
However, other users responded to CZ, reminding him that Binance.US has used Ceffu when it was called Binance Holdings.
Look, another document from Binance US, filed with the courts, that specifically says Binance US uses Ceffu, which was previously named "Binance Holdings Limited" pic.twitter.com/JPBOHsbw9N
— Adam Cochran (adamscochran.eth) (@adamscochran) September 19, 2023
If CZ provides more clarity, we’ll update this story when it happens. 🗓️