Updated: July 19, 2024 3:02 PM EDT
Binance.US has been given approval by a judge to invest certain customers’ assets in U.S. Treasury bonds as part of an order setting terms for the cryptocurrency exchange.
As part of the order signed by Judge Amy Berman Jackson of the U.S. District Court for the District of Columbia on Friday, Binance.US is required to work with third-party investment advisers to invest in the assets of BAM Trading Services Inc. and BAM Management US Holdings Inc. (collectively, BAM Assets), both of which are located in the United States.
Binance.US is also required to transfer cryptocurrencies to a third-party custodian that is not affiliated with the exchange. BAM may invest certain customer fiat currencies held by BitGo in U.S. Treasury bonds that “maturate every four weeks,” with no Binance entity involved in the investment, and BAM holding sufficient dollars on the platform to meet customer withdrawal requests, among other requirements. Bespeak.
Binance.US did not immediately respond to a request for comment.
Judge Jackson is overseeing the lawsuit brought by the U.S. Securities and Exchange Commission against Binance. THe is SEC I sued Binance and its former CEO Changpeng Zhao last year accused the cryptocurrency exchange of lying to customers, failing to restrict U.S. investors from accessing Binance.com, misdirecting capital to a segregated investment fund owned by Zhao, and operating as an unregistered exchange. Zhao is currently serving a prison sentence on charges brought by the Justice Department.
Last month, Jackson was mostly Rejected Binance has sought to dismiss the SEC’s lawsuit, but has rejected some of the SEC’s claims, including that the secondary sale of BNB constitutes a security.
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About the Author
Sarah is a reporter covering policy, regulation, and legal issues for The Block. Previously, Sarah was a securities regulation reporter at CQ Legal, where she first began reporting on cryptocurrencies. Sarah has also written for other financial publications, including The Bond Buyer and American Banker. She graduated from the University of Missouri with a degree in print and digital journalism. Sarah lives in Washington, D.C., and is an avid coffee drinker. You can follow her on Twitter @ForTheWynn.