Binance.US Court-Approved to Invest Customer Funds in T-Bills

Binance’s US affiliate, BAM, has received a significant court ruling that allows it to invest customer assets in US Treasury bills. This decision comes amid ongoing legal challenges and aims to provide a secure investment avenue for customer funds.

Permission Granted by Federal Judge

Federal Judge Amy Berman Jackson has granted BAM the permission to invest customer fiat funds held at BitGo into US Treasury bills. This ruling includes specific conditions to ensure that customer withdrawal requests can be met promptly. The investment will be in Treasury bills with a four-week maturity period, providing a short-term, low-risk investment option.

Corporate Asset Investments

In addition to customer funds, Binance.US is also allowed to invest its corporate assets with third-party advisors. However, these investments must not be reinvested in Binance-related entities. Furthermore, any transfer of crypto assets to US-based, non-affiliated custodians will require approval, ensuring an additional layer of oversight and security.

Background and Legal Context

This ruling follows a lawsuit by the Securities and Exchange Commission (SEC) against Binance, its founder Changpeng Zhao, and BAM. The lawsuit alleges that they operated an illegal exchange and committed other regulatory violations. The court’s decision to allow investments in US Treasuries is seen as a step to ensure the financial stability and regulatory compliance of Binance.US amid these legal challenges.

Takeaways

For customers of Binance.US, this ruling provides a layer of assurance that their funds are being invested in low-risk, government-backed securities. It also highlights the importance of regulatory compliance and the measures being taken to ensure the safety and liquidity of customer assets.