- Federal judge rules Binance's US affiliate BAM can invest in US Treasuries.
- BAM can also transfer crypto to third-party investment advisers with which it is not affiliated
Binance’s US affiliate received permission from Federal Judge Amy Berman Jackson to invest some customer assets in US Treasury bills.
Binance.US can also transfer crypto to third-party investment advisers with which it is not affiliated, under the ruling.
Binance’s US affiliate BAM will be allowed to invest some customer fiat funds now held at crypto custody company BitGo into Treasuries that “will mature on a rolling four-week basis provided that no third parties,” including Binance.US entities, are involved in the investment, according to the court order.
It added that BAM must also maintain sufficient US dollars on its platform to honour all expected customer fiat withdrawal requests, amend its terms of use and provide notice to customers.
Last June, the Securities and Exchange Commission sued Binance, its now jailed founder Changpeng Zhao and Binance’s US affiliate BAM in a case over which Jackson presides.
The agency’s 13-count lawsuit alleged that Binance was running an illegal exchange, brokerage, and clearing agency, as well as unlawfully listing digital assets that should be registered as securities. It also alleged Binance committed fraud and lied to investors, DL News reported.
In a separate case, Binance agreed in November to pay a $4.3 billion fine to settle criminal charges brought by the US Department of Justice.
Also, Zhao agreed to step down as CEO and plead guilty to violations of the Bank Secrecy Act, as well as pay a $50 million fine.
This story was updated to reflect that Binance and Binance.US are separate, independent legal entities.
