Voyager Digital VYGVQ submitted for Chapter 11 bankruptcy Shelter in New York in July. Since then, several companies have offered to buy the company’s assets.
FTX Trading Ltd. and binance are in a race to acquire Voyager’s digital assets. FTX had made an offer that was rejected in July. Now, Binance’s attempt to buy the crypto lender’s assets may face a hurdle.
according to a reportBinance’s approach was complicated by concerns that the US government would reject the transaction.
The US Committee on Foreign Investments (CFIUS) reviews purchases of US-operated companies by foreign companies.
The CFIUS fears that this deal could pose a national security risk.
That New York Times reported this President Joe Biden has signed an executive order “aimed at increasing the federal government’s powers to block Chinese investments in technology in the US and restrict their access to citizens’ private data.”
Also read: Why Binance CEO Zhao says this is the right time to invest in crypto
However, binance has dismissed the notion that the company is Chinese. Its CEO Changpeng Zhao lately wrote“I’m a Canadian citizen, period.”
As part of the ongoing CFIUS review, Binance has been asked to hedge against a possible delay in the purchase agreement by adding funds to its offering.
“Binance has invested in countless American companies, both directly and through Binance Labs,” Patrick Hillman, binance Chief Communications Officer said on Friday.
“Binance is a Canadian company wholly owned by a Canadian citizen. Accordingly, Binance has never been the subject of any official or unofficial investigation by CFIUS,” he added.
FTX has placed the highest bid for Voyager’s assets to date, with a final decision on the accepted bid not expected before the end of September.
Disclosure: Benzinga CEO Jason Raznick is a member of the unsecured committee of creditors in Voyager Digital’s bankruptcy.
Photo Courtesy: Binance
