- CFIUS announced that the committee would review Binance’s acquisition of the assets of the troubled crypto platform Voyager Digital.
- Binance US intended to buy the assets of Voyager Digital with a bid of $20 million in cash.
- The Committee has the authority to delay or block the proposal if the transaction poses threats to national security.
According to the United States bankruptcy court filing issued on Friday, the Committee on Foreign Investment in the United States (CFIUS) would review Binance’s $1 billion acquisition of the bankrupt crypto lender Voyager Digital. Following the review, the acquisition could be delayed or blocked by CFIUS while analyzing the possibilities of national security risks associated with transactions.
On December 19, the US branch of the cryptocurrency trading platform Binance, Binance US announced its decision to acquire the assets of the troubled crypto firm Voyager Digital. Later, the company shared the positive response of Voyager Digital, entering into an agreement for Binance.US to acquire its assets”.
Catherin Coley, the CEO of US Binance told that the company’s move would allow the affected users to access their locked-up assets:
We are committed to helping Voyager’s users navigate this difficult time and regain access to their funds. This purchase shows how much we care about the cryptocurrency community and how much we believe in digital assets’ long-term potential.
Significantly, Binance US intended to buy the assets of Voyager Digital with a bid that includes almost $20 million in cash and crypto assets that will be used to repay the customers of Voyager Digital.
Usually, when a foreign company or investor proposes the acquisition of a US-based company, the initial procedure is to ensure that there are no US national security risks; the review is mandatory and is done by the CFIUS. The duration of the review can extend from 30 days to even 1 year depending upon the transaction.
Thus, CFIUS announced that the committee has decided to review the proposal’s security levels and has the authority to either delay or block the proposal if the transaction poses threat to national security.
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