Binance.US Receives Approval to Invest Customer Assets in U.S. Treasury Bills

by Nicholas Edwards · 19/07/2024

Bollywood Fever: Binance’s U.S. affiliate, Binance.US, received approval from a federal judge on Friday to invest certain customer assets in U.S. Treasury bills. This order alleviates some of the restrictions imposed by the U.S. Securities and Exchange Commission (SEC), the affiliate announced.

According to the court order, Binance.US is authorized to transfer cryptocurrency to a third-party custodian that is not affiliated with the exchange. Additionally, the operator of Binance.US, BAM, has been permitted to invest specific customer fiat funds, currently held at the crypto custody firm BitGo, in U.S. Treasury bills. These investments will mature on a rolling four-week basis, provided that no third parties, including Binance entities, are involved in the process.

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In June last year, the SEC filed a lawsuit against Binance, its CEO and founder Changpeng Zhao, and Binance.US’s operator. The SEC accused Binance of artificially inflating its trading volumes, diverting customer funds, failing to restrict U.S. customers from its platform, and misleading investors about its market surveillance controls.

Later that month, Binance, the world’s largest cryptocurrency exchange, along with Binance.US, entered into an agreement with the SEC to ensure that U.S. customer assets remain within the United States.

This recent court approval represents a significant step for Binance.US, allowing it to manage customer assets more flexibly while complying with legal and regulatory requirements.

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