Court Allows Binance US to Invest Customer Funds in Treasury Bills

A US court has approved Binance US's request to invest customer fiat funds held at BitGo into US Treasury Bills.

The exchange plans to invest around $40 million in $10 million increments over four weeks through TreasuryDirect.

Judge Amy Berman Jackson granted this on July 19, ensuring Binance US maintains sufficient funds for customer withdrawals and updates its terms to notify users.

The court also allowed Binance US to hire third-party investment advisors for managing corporate assets and to transfer custodied assets to an unaffiliated third-party custodian in the US.

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The firm must ensure that the new private keys are controlled by US-based employees or the third-party custodian and verify that the advisors are not associated with Binance Entities. This comes as Binance US faces ongoing legal challenges with the SEC.

Meanwhile, Binance assisted the FBI in San Diego in recovering $2.5 million in USDT from a “pig butchering” scam. These scams involve fraudsters gaining victims’ trust online and convincing them to invest in fraudulent crypto schemes before stealing their assets.

The US Department of Justice reported that such scams led to over $2 billion in losses in 2022.

Alexander Stefanov