A US court has granted Binance US permission to invest certain customer fiat funds, currently held at BitGo, in US Treasury Bills.

Earlier this week, the exchange requested court approval to invest about $40 million in $10 million increments over four weeks. These investments will be made through a trading account on TreasuryDirect in US Treasury bills that will mature on a rolling four-week basis.

On July 19, Judge Amy Berman Jackson approved the exchange to invest its customer fiat funds, provided it maintains enough funds on its platform to meet all expected customer withdrawal requests and updates its terms of use to notify customers accordingly.

Other requests

The judge also granted the exchange other requests which included the authorization to engage third-party investment advisors to manage its corporate assets and transfer its custodied assets to a non-affiliated third-party custodian in the United States.

Meanwhile, the Judge stated that the firm must ensure that the new private and administrative keys for those wallets are maintained and directed solely by its employees in the United States or by the third-party custodian located in the United States.

Additionally, the Judge ordered that the exchange must conduct reasonable diligence to ensure that the advisors that would be managing its assets do not qualify as Binance Entities.

Binance US, the subsidiary of the global Binance exchange, is currently embroiled in an ongoing legal battle with the US Securities and Exchange Commission (SEC).

Recovery

In a parallel development, the international Binance exchange said it assisted 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 are scams where fraudsters use manipulative tactics to gain victims’ trust online. Once trust is established, the unsuspecting victims are lured into investing in a fraudulent crypto scheme.

The scammer often persuades the victim to make additional payments before the fraud is discovered. The “butchering” happens when the scammer steals the victim’s assets, causing severe financial and emotional harm.

According to the US Department of Justice, these types of scams have become somewhat prevalent, and over $2 billion were stolen via the schemes in 2022.

Mentioned in this article