Court Approval Allows Binance to Invest Customer Fiat Funds in US Treasury Bills, BNB Price Surges
The popular cryptocurrency exchange Binance has received court approval to invest customer fiat funds into US Treasury Bills (T-Bills), marking a significant milestone after facing heightened scrutiny in the United States. This decision has led to a remarkable price recovery for Binance’s native token, Binance Coin (BNB), pushing it towards the $600 level.
The court granted relief to Binance’s US subsidiary, BAM, allowing it to hire third-party investment advisors to manage corporate assets and invest client fiat funds in US Treasury Bills. This court-approved arrangement will enable BAM to invest certain customer fiat funds held at BitGo in T-Bills on a rolling four-week basis, with strict compliance measures in place to protect customer assets.
Furthermore, as part of the court’s decision, BAM is now permitted to custody assets with and transfer assets to wallets provided by non-affiliated third-party custodians in the US. This move aims to maintain control over customer assets and ensure transparency in asset management.
The approval comes after Binance’s agreement to pay a settlement of $4.3 billion to the US government, which included a forfeiture of $2.5 billion and a fine of $1.8 billion. The former CEO, Changpeng Zhao (CZ), also faced charges and agreed to step down from his position, currently serving a four-month sentence.
In response to the news, BNB’s price has surged over 5%, reaching $597 and breaking above the 200-day exponential moving average (EMA). Despite recent gains, the token is still down 17% from its all-time high of $717. Traders are now eyeing resistance levels at $610, $633, and $675 as BNB continues its price recovery.
Overall, the court approval and positive price action signal a new chapter for Binance and its native token, Binance Coin, as they navigate regulatory challenges and strive for continued growth in the cryptocurrency market.
