- Ripple CTO challenges claim that Binance CEO lied about custody service used by Binance.US.
- SEC seeks court approval to inspect Binance.US over custody concerns.
- Binance’s CEO denies allegations that Binance.US used Ceffu to move user funds out of the US.
In a recent tweet, Ripple’s Chief Technology Officer David Schwartz bursts a critic alleging that the CEO of Binance, Changpeng Zhao (CZ), lied about the custody service used by the Binance U.S. sister arm, Binance.US.
Schwartz’s comment came amid a report that the U.S. Securities and Exchange Commission (SEC) sought approval from the court to inspect Binance.US. Per the update, the SEC believes Binance.US used Ceffu to keep customers’ funds. The main issue is that Ceffu is a rebranded custody service provider of the parent firm, Binance.
Additionally, the report stated that the SEC wants to inspect Binance.US, given the sentiment that the platform allegedly used Ceffu to move users’ funds out of the United States. Such action is deemed a violation of the earlier agreement between Binance.US and the U.S. regulators.
In response, the Binance CEO clarified that Binance.US never used Ceffu or any Binance custody service. “You can’t just make this stuff up,” Zhao proclaimed in a tweet.
Meanwhile, Bitfinexed, a renowned critic of centralized crypto platforms, countered Zhao’s claim that he was lying to the public. The crypto enthusiast shared a document that supposedly exposed CZ as a liar. In response, the Ripple CTO pointed out the weaknesses in Bitfinexed’s claim.
In particular, Schwartz highlighted that Binance’s CEO was clarifying that the sister firm never used custody services from the parent firm, while the critic merely shared a document detailing Ceffu’s product offering.
“Isn’t the first image talking about actual custody and the second talking about software and support?” Schwartz simply remarked.
Notably, as Coin Edition reported, the U.S. regulator failed to win approval for the Binance.US inspection. Specifically, the U.S. court has denied the SEC’s attempt to review Binance.US’ software and tech infrastructure.
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