- CFIUS will review transactions made by bankrupt crypto lender Voyager Digital Holdings
- Binance.com recently agreed to buy Voyager’s assets for $1.022 billion
The Committee on Foreign Investment in the United States [CFIUS] will review transactions made by bankrupt crypto lender Voyager Digital Holdings. This was according to a 30 December filing by U.S. Attorney Damian Williams.
Though the filing did not mention Binance.US, the American subsidiary of the world’s largest exchange, Binance.com, agreed to buy Voyager’s assets for $1.022 billion on 19 December.
Binance.com was an initial bidder for Voyager’s assets in September 2022, but was beaten out by the now-defunct FTX. Binance’s bid for the US-based Voyager was also rejected on 15 September 2022 due to concerns over national security.
Binance founder and CEO Changpeng Zhao “CZ” was born in China but is a Canadian citizen. Binance also maintained that it is a global company.
CFIUS reviews transactions and monitor ‘security concerns’
CFIUS reviews foreign entities looking to purchase companies with U.S. operations. It blocks transactions that seemingly pose a national security risk to the US. If CFIUS determines that one or more transactions fall(s) under its jurisdiction and pose(s) a national security risk, it will conduct an analysis of the risks associated with those transactions.
When a foreign investor proposes an acquisition or merger involving control of a US-based company, the CFIUS must review it. This is to ensure that there are no national security concerns regarding the entity in the country.
This is a voluntary process that can take anywhere from 30 days to over a year, depending on the transaction. The committee is also empowered to suspend any suspicious transactions.
If negotiations fail, the committee has the authority to block any such transactions that it deems harmful to US interests. CFIUS is critical in protecting US technology, intellectual property, and critical infrastructure from exploitation by foreign or domestic parties acting against US interests.
Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot’s writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S – There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/
