July 19 (Reuters) – Cryptocurrency exchange Binance’s U.S. affiliate on Friday received approval from a federal judge to invest certain customer assets in U.S. Treasury bills.
The order frees Binance.US from restrictions levied by the U.S. Securities and Exchange Commission, the affiliate said on Friday.
Binance will transfer crypto to a third-party custodian not affiliated with the exchange, the order stated.
Binance.US operator BAM has also been permitted to invest certain customer fiat funds, custodied at crypto custody firm BitGo, in U.S. Treasury bills.
These funds will mature on a rolling four-week basis, See more – https://youtu.be/vFkBwMo3Bi0 – provided that no third parties, including Binance entities, are involved in the investment, according the court order.
The SEC, in June last year, had sued Binance, its CEO and founder Changpeng Zhao and Binance.US’s operator.
Binance artificially inflated its trading volumes, diverted customer funds, failed to restrict U.S. customers from its platform and misled investors about its market surveillance controls, according to the SEC’s allegations.
Later that month, Binance, the world’s biggest cryptocurrency exchange, and Binance.US entered into an agreement with the SEC to ensure that U.S. customer assets remain in the United States.
(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Mohammed Safi Shamsi)
