📰 Yello Paradisers!

The crypto world is buzzing with the latest update from Binance CEO Changpeng ‘CZ’ Zhao, who has finally broken his silence on the ongoing controversy involving Ceffu and the U.S. Securities and Exchange Commission (SEC).

📰 The Statement

In a tweet, CZ clarified, “For the record, Binance US does not use, and has NEVER used Ceffu or Binance Custody. You can’t just make this stuff up.” This comes amid allegations from the SEC that Binance’s U.S. arm is connected to Ceffu, formerly known as Binance Custody.

📰 The SEC’s Concerns

The SEC has been probing Binance-affiliated companies, particularly Binance.US, over their alleged ties to Ceffu. The agency is concerned that Ceffu, a “newly rebranded Binance Entity,” may have control over customer assets. The SEC also pointed out that BAM, the company behind Binance.US, is prohibited from using a “foreign Binance affiliated third-party for wallet custody services” under a previous consent order.

📰 The Dispute

The SEC and Binance seem to be at odds over the level of cooperation in providing requested information. While the SEC claims that Binance has not fully complied, Binance argues that some of the SEC’s requests are overly broad or burdensome.

📰 Looking Ahead

A recent hearing saw a D.C. district judge encouraging both parties to find a constructive resolution. Both the SEC and Binance have agreed to a scheduled hearing on October 12 and will submit a joint status report by October 10.

📰 The Takeaway

This ongoing controversy highlights the complexities of regulatory oversight in the crypto industry. It also raises questions about transparency and compliance, which are crucial for the sector’s long-term stability and growth.

📰 Stay tuned for more updates on this unfolding story. Trade wisely, Paradisers! 🌴