According to a court filing, the SEC urged the Washington, D.C., court to approve an investigation into Binance.US asset custody issues. In the filing, the SEC reiterated its concerns about Binance’s use of custody platform Ceffu, arguing that the findings of the case so far indicate that “ An inspection is urgently needed”.
The SEC claimed that “Cefu” is a Binance entity and not just a digital asset wallet provider. The SEC said Ceffu, which changed its name from Binance Custody earlier this year, may also have provided services for Binance.US and was therefore used to move U.S. customers’ funds out of the country, in violation of previous agreements. The SEC further accused the company of “providing inconsistent representations of key facts, being slow to provide documents and information on a small scale, and obstructing entire categories of information that could expose unreliability regarding its custody of client assets.”
