- Binance can invest U.S. customer funds in Treasury Bills, with assets held by BitGo, maturing on a rolling four-week basis.
- Court approval allows Binance to navigate U.S. regulatory challenges post a $4.3 billion fine and CEO resignation.
- Binance’s investment in Treasury Bills ensures compliance and secure management of customer assets, free from SEC restrictions.
Binance, a cryptocurrency exchange, has secured court approval to invest U.S. customer fiat funds in U.S. Treasury Bills. This decision follows a detailed court filing that outlines the parameters under which Binance is authorized to manage these investments.
Court Approval and Investment Details
According to the court filing, Binance can now invest specific customer fiat funds, currently held by BitGo, into U.S. Treasury Bills. These investments will mature on a rolling four-week basis, with the condition that no third-party entities are involved in the process. Additionally, Binance must maintain enough USD on its platform to cover all anticipated customer fiat withdrawal requests.
This approval comes after Binance settled criminal charges with the U.S. Justice Department in November of last year. The settlement concluded a years-long investigation, resulting in a $4.3 billion fine and the resignation of former CEO Changpeng Zhao. Despite these challenges, the recent court approval marks a forward step for Binance in navigating its regulatory field in the U.S.
Understanding U.S. Treasury Bills
In a recent release, Binance provided an overview of U.S. Treasury Bills, explaining how they function as low-risk investments that raise money for the government. The exchange highlighted the safety and reliability of these short-term debt securities, which are typically issued to meet specific financial needs.
The court’s decision also frees Binance.US from certain restrictions previously imposed by the U.S. Securities and Exchange Commission (SEC). As part of the order, Binance will transfer crypto assets to a third-party custodian unaffiliated with the exchange. This move aims to ensure the security and proper management of customer assets.
SEC Investigations and Agreements
In June last year, the SEC filed a lawsuit against Binance, its CEO, and Binance.US’s operator, alleging artificial inflation of trading volumes, diversion of customer funds, and other violations. However, later that month, Binance and Binance.US reached an agreement with the SEC to keep U.S. customer assets within the United States.
The court approval for Binance to invest customer funds in U.S. Treasury Bills is a development for the exchange. By adhering to the court’s guidelines and ensuring regulatory compliance, Binance aims to manage its customer assets responsibly and navigate the complex regulatory environment in the U.S.
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