Binance's Effort To Buy Voyager Assets Could Be In Jeopardy Over National Security Concerns: Report

Zinger Key Points
  • The bid to acquire Voyager's assets is not officially decided until the end of Sept. 
  • FTX has the highest bid for Voyager, though additional offers could come in soon. 
Binance's Effort To Buy Voyager Assets Could Be In Jeopardy Over National Security Concerns: Report

Voyager Digital VYGVQ filed for chapter 11 bankruptcy protection in New York in July. Since then, several companies have offered to buy the company's assets. 

FTX Trading Ltd. and Binance are in the race to acquire Voyager's digital assets. FTX had made an offer that was rejected in July. Now, Binance's attempt to purchase the crypto lender's assets could face a hurdle. 

According to a report, Binance's approach has been complicated by concerns the U.S. government would reject the transaction.

The Committee on Foreign Investment in the U.S. (CFIUS) reviews purchases of companies with U.S. operations by overseas entities. 

The CFIUS worries that this deal could pose a national security risk. 

The New York Times has reported that President Joe Biden has signed an executive order "designed to sharpen the federal government's powers to block Chinese investment in technology in the U.S. and limit its access to private data on citizens."

Also Read: Why Binance CEO Zhao Says This Is The Right Time To Invest In Crypto

However, Binance has rebuffed the notion that the company is Chinese. Its CEO Changpeng Zhao recently wrote, "I am a Canadian citizen, period."

With the ongoing CFIUS review, Binance has been asked to ensure against a potential delay in the purchase deal, by adding money on top of its bid. 

"Binance has made investments into countless American companies both directly and through Binance Labs," Patrick Hillmann, Binance's chief communications officer, said on Friday. 

"Binance is a Canadian company owned wholly by a Canadian citizen. Accordingly, Binance has never been the subject of an inquiry officially or unofficially by CFIUS," he added. 

FTX has the highest bid for Voyager's assets so far, a final decision on the accepted bid isn't expected until the end of September.

Disclosure: Benzinga CEO Jason Raznick is a member of the unsecured creditor committee in the Voyager Digital bankruptcy case.

Photo courtesy: Binance

Posted In: Changpeng ZhaoFTXJoe BidenCryptocurrencyNewsPenny StocksTop StoriesMarkets

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