- The crypto exchange will transfer its crypto assets to a third-party custodian unaffiliated with the exchange.
- The court allowed BAM, the operator of Binance.US, to invest certain customer fiat funds held at BitGo into US Treasury bills.
Binance.US has received court approval to invest certain customer assets in US Treasury bills. This move marks a significant development in the ongoing regulatory saga involving the company and the US Securities and Exchange Commission (SEC).
A federal judge granted the American affiliate of the global cryptocurrency exchange Binance the authority to invest specific customer assets in US Treasury bills. This decision, announced by the exchange on Friday, effectively lifts previous restrictions imposed by the SEC. Binance.US highlighted the court’s order and its implications, describing it as a new chapter in its regulatory compliance efforts.
“In practice, this motion enables us to manage our corporate treasury more effectively and bolsters and diversifies how we custody customer funds to now include investments with the U.S. Treasury. As always, customer funds are backed 1:1,” Binance.US wrote on X.
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Investing Customer Fiat Funds In Treasury Bills
The court has also permitted BAM, the operator of Binance.US, to invest certain customer fiat funds held at BitGo, a crypto custody firm, into US Treasury bills, Reuters reported. These investments will mature on a rolling four-week basis, ensuring that no third parties, including any Binance entities, are involved in the process. This condition aims to ensure a clear separation of interests and compliance with regulatory standards.
In June of the previous year, the SEC filed a lawsuit against Binance, its CEO and founder Changpeng Zhao, and BAM, the operator of Binance.US. The allegations included claims that Binance had artificially inflated its trading volumes, diverted customer funds, failed to restrict US customers from its platform, and misled investors about its market surveillance controls.
Following these allegations, Binance and Binance.US agreed with the SEC later that month. The agreement was designed to ensure that US customer assets remained within the United States, reinforcing the company’s commitment to regulatory compliance and customer asset protection.
