Binance US has recently received legal permission from a US court to invest certain customer fiat funds that are currently being held at BitGo. The exchange sought court approval to invest approximately $40 million in increments of $10 million over the course of four weeks. These investments will be directed towards US Treasury Bills, with maturity occurring on a rolling four-week basis.
Judge Amy Berman Jackson, who presided over the case, approved the exchange’s request on July 19. She mandated that Binance US must ensure that it maintains adequate funds on its platform to fulfill all anticipated customer withdrawal demands. Additionally, the terms of use for customers must be updated to inform them of this investment strategy.
Apart from the investment approval, the Judge also granted Binance US other requests. These included the authority to hire third-party investment advisors to manage corporate assets and move custodied assets to a non-affiliated third-party custodian within the United States. It was further stipulated that all private and administrative keys for the wallets must be handled exclusively by the exchange’s employees or the third-party custodian present in the United States.
This development comes at a time when Binance US is entangled in a legal dispute with the US Securities and Exchange Commission (SEC). In another related incident, the global Binance exchange collaborated with the US Federal Bureau of Investigations (FBI) San Diego to uncover a pig butchering scam that resulted in the recovery of $2.5 million in USDT.
Overview of Pig-Butchering Scams
Pig butchering schemes are online scams where fraudsters manipulate victims into investing in fraudulent crypto ventures. These scammers earn the trust of unsuspecting individuals through deceptive means, persuading them to contribute funds to the false scheme. As soon as additional payments are made, the fraud is exposed, and the scammer absconds with the victim’s assets, leading to significant financial and emotional distress.
According to statistics from the US Department of Justice, pig butchering scams have become increasingly common, with over $2 billion being stolen through such schemes in the year 2022 alone. These fraudulent activities highlight the importance of regulatory oversight and vigilant monitoring to safeguard investors and prevent financial losses in the cryptocurrency market.
Leave a Reply