Binance.US Gets Judge’s Sign-Off to Invest Customer Assets in US Treasury Bills

Points

• Binance.US received a judge’s approval to invest certain customer assets in U.S. Treasury bills.
• The decision is part of an ongoing SEC case against Binance and its former CEO, Changpeng Zhao.
• Binance.US must transfer crypto to a third-party custodian and work with investment advisers.

Binance.US has received a judge’s approval to invest certain customers’ assets in U.S. Treasury bills as part of an order setting conditions for the crypto exchange. Judge Amy Berman Jackson of the U.S. District Court for the District of Columbia signed the order, which requires Binance.US to work with third-party investment advisers and transfer crypto to a third-party custodian.

Cointelegraph

Order Details

Under the order, Binance.US is allowed to invest certain customer fiat funds custodied at BitGo in U.S. Treasury bills that “will mature on a rolling four-week basis.” The investment must ensure that no Binance entities are involved, and Binance.US must maintain sufficient funds for customer withdrawal requests, among other requirements.

SEC Case Background

The order is part of an ongoing case brought by the U.S. Securities and Exchange Commission （SEC） against Binance and its former CEO, Changpeng Zhao. The SEC accused Binance of lying to customers, failing to restrict U.S. investors from accessing Binance.com, misdirecting capital to separated investment funds owned by Zhao, and operating as an unregistered exchange. Zhao is currently serving jail time for his charges from the Department of Justice.

Previous Court Rulings

Last month, Judge Jackson mostly rejected Binance’s push to dismiss its case with the SEC but did dismiss some of the SEC’s points, including that secondary sales of BNB were securities. The ongoing legal battles highlight the regulatory scrutiny faced by cryptocurrency exchanges and the need for compliance with financial regulations.

Conclusion

The judge’s approval for Binance.US to invest in U.S. Treasury bills is a significant development in the ongoing SEC case. It underscores the importance of regulatory compliance and the measures that crypto exchanges must take to ensure the protection of customer assets.

解説

• Regulatory Compliance: The judge’s order highlights the importance of compliance with financial regulations for cryptocurrency exchanges, ensuring the protection and proper management of customer assets.
• Investment Strategy: Investing in U.S. Treasury bills provides a secure and stable investment option for customer assets, reducing risk and enhancing trust.
• Legal Challenges: The ongoing SEC case against Binance reflects the broader regulatory scrutiny faced by the cryptocurrency industry, emphasizing the need for transparency and adherence to legal standards.