Binance.US has recently received court approval to invest $40 million in US Treasury bills using certain customer fiat funds. The exchange plans to invest the money in $10 million increments over four weeks, using a trading account on TreasuryDirect. The US court has granted Binance US permission to invest its customer fiat funds currently held at BitGo, ensuring that enough funds are maintained on the platform to meet all expected customer withdrawal requests.
In addition to the investment approval, the court has also granted other requests to Binance US. These include authorization to engage third-party investment advisors to manage corporate assets and transfer custodied assets to a non-affiliated third-party custodian in the United States. The exchange must ensure that new private and administrative keys for wallets are maintained and directed solely by its employees in the US or by the third-party custodian.
Furthermore, the exchange is required to conduct reasonable diligence to ensure that the advisors managing its assets do not qualify as Binance Entities. Binance US, a subsidiary of the global Binance exchange, is currently facing legal challenges with the US Securities and Exchange Commission (SEC).
In a separate incident, the international Binance exchange helped the US Federal Bureau of Investigations (FBI) San Diego in investigating a pig butchering scam that recovered $2.5 million in USDT. Pig-butchering schemes involve fraudsters using manipulative tactics to gain victims’ trust online, luring them into investing in a fraudulent crypto scheme.
These scams have become increasingly prevalent, with over $2 billion stolen through such schemes in 2022, according to the US Department of Justice. The recovery of funds in this case highlights the importance of vigilance and caution when investing in the cryptocurrency market to avoid falling victim to fraudulent schemes.