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U.S. Review Could Delay or Block Binance $1 Billion Deal for Voyager Digital

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U.S. Review Could Delay or Block Binance $1 Billion Deal for Voyager Digital

(CTN News) – A U.S. national security assessment might delay or prevent Binance’s $1 billion purchase of insolvent crypto lender Voyager Digital, according to a bankruptcy court filing on Friday.

US-based branch of the cryptocurrency exchange Binance.

With a deal that includes $20 million in cash and cryptocurrency assets that will be used to pay back Voyager’s consumers, the US plans to acquire the crypto lending platform that Voyager operates.

However, the U.S. Committee on Foreign Investment in the United States (CFIUS), an interagency body that assesses foreign investments into American businesses for risks to national security, stated on Friday that its examination “could affect the ability of the parties to complete the transactions, the timing of completion, or relevant terms.”

Lawyers for Binance and Voyager.

The US didn’t react right away to demands for comment on Friday.

Washington has been using CFIUS more and more as a weapon to thwart Chinese investment in the US.

Changpeng Zhao, a Chinese-born resident of Singapore and the owner of Binance, does not have a physical headquarters. The business is the focus of an investigation for money laundering by US authorities.

The Palo Alto, California-based company Binance.US has said that its American exchange is “completely autonomous” of the main Binance platform.

In its court brief, CFIUS did not specifically address any security issues brought up by the Voyager transaction, but it did note that bankruptcy courts have sometimes determined that national security considerations might limit a company’s ability to bid on assets in bankruptcy.

Months after the collapse of two significant cryptocurrencies, TerraUSD and Luna, sent shockwaves across the digital asset sector, Voyager filed for bankruptcy in July.

When FTX Trading filed for bankruptcy in November due to a flurry of client withdrawals and fraud claims that resulted in the arrest of CEO Sam Bankman-Fried, Voyager’s first plan to transfer its assets to FTX Trading collapsed.

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