Binance.US has received court approval to invest customer fiat funds in US Treasury Bills, ensuring transparent and responsible fund management.
Points
- Court allows Binance.US to invest $40 million in Treasury Bills.
- Investments to be managed by third-party custodians with strict controls.
- Monthly reports required for transparency.
- Binance.US must maintain sufficient USD liquidity for withdrawals.
Binance.US has secured court approval to invest certain customer fiat funds in US Treasury Bills, a move that aims to ensure responsible and transparent fund management. On July 19, Judge Amy Berman Jackson granted the crypto exchange the authority to proceed with these investments under strict conditions.
The court’s decision allows Binance.US to invest approximately $40 million in Treasury Bills, with $10 million invested in increments over four weeks through a TreasuryDirect trading account. This arrangement requires that no third parties, including Binance Entities, be involved in the investment process.
Additionally, Binance.US must transfer its custodied assets to a non-affiliated third-party custodian in the US. Employees based in the US will solely control the new private and administrative keys for these wallets, or alternatively, they can be managed by a third-party custodian.
To ensure transparency and liquidity, the court mandated Binance.US to maintain an adequate amount of USD on its platform to meet all potential customer fiat withdrawal requests. The calculation is based on historical withdrawal activity. Binance.US is also required to provide detailed monthly reports outlining any costs related to maintaining these Treasury investments.
Judge Jackson emphasized the importance of thorough due diligence to ensure that the advisors managing Binance.US assets do not qualify as Binance entities. This due diligence is crucial to prevent conflicts of interest and ensure the highest level of integrity in handling customer funds.
This court approval follows a federal judge’s decision in June to dismiss part of the US SEC’s lawsuit against Binance and its founder, Changpeng Zhao. However, the court allowed other charges, including those against the holding company for Binance.US, to proceed.
解説
- Binance.US’s court-approved investment in Treasury Bills aims to enhance fund management transparency and responsibility.
- The investment process is strictly controlled, with third-party custodians managing assets to prevent conflicts of interest.
- Monthly transparency reports and maintaining sufficient USD liquidity are crucial for ensuring customer confidence and meeting withdrawal requests.
- The court’s decision is part of ongoing legal proceedings involving Binance and its founder, highlighting the importance of regulatory compliance in the crypto industry.
- This move underscores Binance.US’s commitment to adhering to legal requirements and maintaining high standards in fund management.