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Judge Amy Berman Jackson has mandated Binance’s U.S. entities to invest customers’ assets in U.S. Treasury bills, recognized as secure investments due to U.S. Treasury Department backing. The decision involves BAM Trading Services Inc. and BAM Management US Holdings Inc., collectively known as BAM, ensuring their assets are managed by third-party investment advisers. Additionally, Binance must transfer crypto assets to an unaffiliated third-party custodian.
Under the order, BAM is permitted to invest certain customer fiat funds, held at BitGo, in U.S. Treasury bills maturing on a rolling four-week basis. This must be done without involving any Binance entities and ensuring sufficient dollars are available for customer withdrawals. These measures aim to protect customer assets and enhance transparency within the exchange.
This development follows the SEC’s lawsuit against Binance and its former CEO, Changpeng Zhao, for alleged misconduct. Despite some SEC claims being dismissed, the case proceeds, marking a significant regulatory action in the crypto industry.
