SEC claims Ceffu wallet provider is ‘Binance-related’ in motion against BAM


In its newest submitting concerning its motion to compel against BAM, the holding firm for Binance.US, the United States Securities and Exchange Commission (SEC) has claimed that wallet provider Ceffu is indeed “Binance-related.” This is in contradiction to claims made by Binance in earlier court docket paperwork.

The redacted filing argues once more that Binance’s request for a protecting order against the SEC investigation is meritless. It requires the court docket to disclaim that request. Binance made the request in the U.S. District Court for the District of Columbia on Aug. 14, calling the SEC investigation a “fishing expedition.” In its newest submitting, the SEC referred to as Binance’s response to its June swimsuit “a house of mirrors.”

The SEC’s Sept. 18 reply submitting. Source: CourtListener

The SEC raised questions on Ceffu in a memorandum filed in the court docket on Sept. 14, saying the corporate, which was rebranded from Binance in March, “appears to have control of Customer Assets.” 

In response to Binance’s alleged resistance to the SEC investigation, the company wrote in the Sept. 18 submitting:

“The limited inspection the SEC has been able to conduct so far demonstrates the urgent need for an inspection. [redacted] The Court should order the inspection the SEC seeks as set forth in its Motion to Compel.”

The SEC’s Sept. 18 submitting outlined that BAM has asserted that Binance is “a mere third-party vendor whose wallet software services are akin to BAM’s internet service provider,” and so it can’t be anticipated to know the way it operates. The SEC countered:

“Far from being a mere innocuous service provider, however, Binance and BAM are under the common ownership of another Defendant in this action, an individual who views himself outside the jurisdiction of any court.”

The particular person referenced is transparently Binance CEO Changing Zhao. 

The SEC is additionally looking for depositions from former Binance.US CEO Brian Shroder and chief monetary officer Jasmine Lee. Binance.US has countered that their testimony can be “disruptive to BAM’s business.” Schroder’s departure was reported on Sept. 13, together with in depth layoffs.

Binance’s try to get the court docket to rein in SEC investigative efforts set off back-and-forth court docket filings. A listening to on the afternoon of Sept. 18, in native Washington D.C. time, is prone to settle the matter. 

This is a growing story, and additional data can be added because it turns into accessible.