Binance.US receives court approval to invest $40 million of customer funds in US Treasury Bills, with strict transparency and compliance requirements.
Points
- Binance.US will invest $40 million in US Treasury Bills.
- Investments will be made in $10 million increments over four weeks.
- Strict transparency and compliance measures are mandated.
Binance.US has received court approval to invest $40 million of customer funds in US Treasury Bills under strict conditions. This decision will see $10 million invested weekly over four weeks through a TreasuryDirect account. The funds, currently held at BitGo, must be transferred to an autonomous third-party custodian in the United States, with both private and administrative keys controlled exclusively by Binance.US personnel or the custodian.
The court emphasized the importance of transparency in Binance.US’s investment activities, mandating comprehensive monthly disclosures on expenses associated with maintaining these Treasury investments. Binance.US must also maintain sufficient USD reserves to fulfill potential customer withdrawal requests, considering historical withdrawal patterns.
Additionally, Binance.US must perform thorough due diligence to ensure that the advisers overseeing its assets have no affiliation with Binance, thereby avoiding conflicts of interest and ensuring the utmost integrity in managing customer funds.
The court’s ruling follows a June decision that invalidated part of the complaint filed by the US SEC against Binance and its founder, Changpeng Zhao. However, additional charges against the holding company of Binance.US were permitted to proceed. The court’s decision aims to bolster the security of customer assets by imposing stringent requirements and involving a third party in overseeing investment management.
解説
- Investment Approval: The court’s approval for Binance.US to invest in US Treasury Bills provides a secure investment avenue for customer funds, ensuring better compliance and asset management.
- Transparency and Compliance: Strict transparency and compliance measures are crucial in maintaining customer trust and adhering to regulatory standards.
- Conflict of Interest Prevention: Ensuring that advisers managing the investments have no affiliation with Binance is essential to avoid conflicts of interest and maintain integrity in managing customer funds.