Recently, a US court gave the green light to Binance US to invest a portion of its customer fiat funds in US Treasury Bills. This decision came after the exchange sought court approval to invest around $40 million in $10 million increments over a four-week period.
The court, headed by Judge Amy Berman Jackson, imposed certain conditions on Binance US before allowing the investments. The exchange must ensure that it maintains enough funds on its platform to cover all expected customer withdrawals. Furthermore, Binance US is required to update its terms of use to inform customers about the investment of their fiat funds.
Additionally, the court granted Binance US permission to engage third-party investment advisors to manage its corporate assets. The exchange is also allowed to transfer its custodied assets to a non-affiliated third-party custodian based in the United States. However, specific measures were put in place to safeguard the assets, such as restricting the control of private and administrative keys to employees in the US or the third-party custodian.
In a separate development, the international Binance exchange collaborated with the US FBI San Diego in a probe that uncovered a pig-butcher scam involving $2.5 million in USDT. This type of scam typically involves perpetrators using deceptive methods to gain victims’ trust online, only to lure them into investing in a bogus crypto scheme.
Victims of pig-butcher scams are often convinced to make additional payments before realizing they have been defrauded. The perpetrators then abscond with the victims’ assets, resulting in significant financial losses and emotional distress. According to the US Department of Justice, these scams have been on the rise, with over $2 billion stolen through such schemes in 2022.
It is crucial for individuals and investors to remain vigilant and exercise caution when faced with investment opportunities that seem too good to be true. Binance US’s court-approved investment strategy is a positive step towards ensuring transparency and accountability in handling customer funds, amidst the ongoing legal battle with the SEC. Collaborative efforts between exchanges like Binance and law enforcement agencies are essential in combating financial crimes and protecting investors from falling victim to fraudulent schemes.
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