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.
