HomeBinanceBinance Receives Approval to Invest US Customer Fiat Funds in US T-Bills,...

Binance Receives Approval to Invest US Customer Fiat Funds in US T-Bills, Resulting in Surge in BNB Price

-


Court Approval Allows Binance to Invest Customer Fiat Funds in US Treasury Bills, BNB Price Recovers

Court Grants Binance Approval to Invest Customer Funds in US Treasury Bills, BNB Price Surges

In a significant development for Binance, the leading cryptocurrency exchange has received court approval to invest customer fiat funds into US Treasury Bills (T-Bills) through its US subsidiary, BAM Trading Services. This decision comes after a year of increased scrutiny of Binance’s operations in the United States.

The court’s approval allows BAM to hire third-party investment advisors to manage corporate assets and invest client fiat funds in US Treasury Bills on a rolling four-week basis. However, strict compliance measures are in place to ensure the protection of customer funds, including maintaining sufficient USD liquidity for withdrawals and providing appropriate notice to customers.

Furthermore, BAM is now permitted to custody assets with non-affiliated third-party custodians in the US, with BAM Trading officers and employees solely managing wallets’ private and administrative keys. This move aims to maintain control over customer assets and prevent any involvement of Binance Entities in the investment activities.

The court approval follows Binance’s agreement to pay a $4.3 billion settlement to the US government, which included a forfeiture of $2.5 billion and a fine of $1.8 billion. As part of the settlement, former CEO Changpeng Zhao (CZ) stepped down and is currently serving a four-month sentence for violating the Bank Secrecy Act.

The news of the court approval has led to a notable price recovery for Binance’s native token, Binance Coin (BNB), pushing its price towards the $600 level. BNB is currently trading at $597, up over 5% from recent lows, with significant gains in trading volume and a break above the 200-day exponential moving average (EMA).

Despite facing resistance levels at $610, $633, and $675, BNB’s price surge indicates a positive market sentiment and potential for further appreciation. The court’s decision and BNB’s price recovery mark a significant milestone in Binance’s compliance journey and its efforts to regain trust and stability in the cryptocurrency market.

LATEST POSTS

Institutional Investors Sell $690 Million in Bitcoin and Ethereum, Shift Focus to Altcoins

Is the Crypto Bull Run Over? Institutional Investors Dump $690 Million in Bitcoin and Ethereum, Altcoins Like Solana Surge In a surprising turn of events,...

Bitcoin Price Plummets: Crypto Bears Urged to Monitor Key Support Level

Bitcoin and Cryptocurrency Market Update: Bitcoin Falls as Mt. Gox Creditors Prepare to Sell Cryptocurrency investors are on edge as Bitcoin and other digital assets...

Bitcoin drops to $60,000 at the beginning of the week

Bitcoin Continues Descent to $60,000 amid Market Jitters and Liquidations Bitcoin Continues Descent to $60,000 as Cryptocurrency Market Tumbles Bitcoin, the flagship cryptocurrency, continued its downward...

Binance Updates Trading Fees for JPY Spot Pairs and Launches VIP Program

Updates to Binance's Zero-Fee Trading for JPY Spot Pairs and Introduction of VIP Program Binance, one of the leading cryptocurrency exchanges, has made significant updates...

Most Popular