Binance Bags Approval to Invest Customer Funds In Treasury Bonds

The world’s leading crypto exchange Binance has secured legal approval from the U.S. Federal court to invest specific customer fiat funds in US Treasury Bills. 

Binance to Uphold Transparency in Treasury Investments

According to Judge Amy Berman Jackson’s recent ruling, the crypto exchange’s U.S. arm received the go-ahead to invest customer funds in US Treasury bills.

Judge Jackson permitted the exchange to carry out this investment proposal on the grounds of stringent conditions. The court asked the exchange to be responsible and provide a transparent fund management in the treasury investment.  

Under the court ruling, Binance.US operator BAM can now invest customer fiat funds held at BitGo into Treasuries. It will be on a rolling four-week maturity basis, and no third parties, even the exchange’s entities are allowed in the investment.

Additionally, BAM is required to maintain enough US dollars on its platform to fulfil all anticipated customer fiat withdrawal requests. The company must update its terms of service and inform customers of these changes. This approval is considered a great deal for the exchange according to industry experts. This arrangement will allow it transfer cryptocurrency to external investment advisers not affiliated with the company. 

Binance’s Legal Tussles 

This approval came amidst the exchange’s legal challenges. At the moment, the Securities and Exchange Commission (SEC) has a pending lawsuit against Binance, its ex-founder Changpeng ‘CZ’ Zhao who is currently in jail and BAM. 

The suit, consisting of 13 counts, claimed that the platform operated an illegal exchange, brokerage, and clearing agency. Also, it charged Binance of fraud and providing false information to investors. Additionally, it alleged that Binance unlawfully listed digital assets that should have been registered as securities. However, the court classified BNB and BUSD as non-securities.

In another news, one of its executives, Tigran Gambaryan is currently facing a health crisis amid detention in a Nigerian prison.

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