The SEC accuses BINANCE US of using its unregistered custody arm, Ceffu, to move assets overseas; this has hit Binance hard this time.
Question on Ceffu and Custody
Ceffu is a custody and liquidity subsidiary of an EU-registered entity, Bifinity UAB, which is owned by Binance. Also, Binance is the main custodian of assets owned by Binance US, so the SEC's bet is a direct hit this time.
Binance US has a problem
The condition of Binance US is not good by any means. Its CEO has resigned, 1/3 of the staff has been laid off, and after the new allegations, the chief risk officer and head of legal, (responsible for the company's defence) also resigned.
The winner is the SEC
Binance US has been accused by the Gary-led SEC, the declared opponent of the crypto industry, but in the absence of defence staff, Binance US is facing infamy in the crypto world. Many crypto analysts are blaming Binance.
