Binance’s Voyager Digital Deal May Be Blocked
2022.12.31 02:16
Binance’s Voyager Digital Deal May Be Blocked
Budrigannews.com – According to a bankruptcy court filing from Friday, a U.S. national security review could delay or prevent Binance’s $1 billion acquisition of Voyager Digital, a bankrupt crypto lender.
Binance, the U.S.-based subsidiary of the cryptocurrency exchange. With a bid that includes $20 million in cash and crypto assets that will be used to repay Voyager’s customers, the US intends to acquire Voyager’s crypto lending platform.
However, the interagency U.S. Committee on Foreign Investment in the United States (CFIUS), which evaluates foreign investments in American businesses for potential threats to national security, stated on Friday that its review “could affect the ability of the parties to complete the transactions, the timing of completion, or relevant terms.”
Voyager and Binance’s lawyers. The United States did not immediately respond to inquiries regarding Friday.
Washington has been using CFIUS more and more to prevent Chinese investment in the United States.
Changpeng Zhao, a Singaporean of Chinese descent who owns Binance, does not have a headquarters of its own. The organization has been the subject of a tax evasion test by U.S. examiners. Binance. According to the US, which has its headquarters in Palo Alto, California, its own American exchange is “fully independent” of the main Binance platform.
In its court filing, CFIUS stated that bankruptcy courts have occasionally ruled that national security concerns can prevent a company from bidding on assets in bankruptcy. However, it did not mention any specific security concerns that were raised by the Voyager acquisition.
In July, months after the major crypto token crashes of TerraUSD and Luna shocked the digital asset industry, Voyager filed for bankruptcy.
Explorer at first wanted to offer its resources for FTX Exchanging, yet that arrangement collapsed when FTX failed in November in the midst of a free for all of client withdrawals and extortion charges that prompted the capture of pioneer Sam Bankman-Seared.
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