Binance’s $1 billion acquisition of beleaguered crypto lender Voyager Digital could risk being delayed or blocked by the Committee on Foreign Investment in the United States (CFIUS) review.
binance.usThe US-based subsidiary of the cryptocurrency exchange intends to buy Voyager’s crypto lending platform for $20 million in cash and crypto assets, which will be used to repay Voyager’s customers.
According to a recent filing Presented The takeover on 30 December may now be in jeopardy. The US bankruptcy court overseeing Voyager Digital’s bankruptcy case has raised concerns about the deal and is considering blocking it. The court is reportedly concerned that the acquisition could lead to unfair treatment. seafarer’s creditors and may not be in the best interests of the shareholders of the Company.
In its court arguments, CFIUS did not identify any specific security issues raised by the Voyager acquisition. Still, it insisted that national security issues have periodically prevented businesses from transferring assets due to bankruptcy court rulings.
Voyager Bankruptcy and Bidding
Founded in 2018, Voyager was known for its crypto trading platform and lending services that allowed customers to borrow against them. digital assets, However, the company struggled to gain traction in a crowded market and faced increasing competition from more prominent, established players.
In recent years, Voyager’s financial performance had declined, with the company posting heavy losses and struggling to attract new customers. Despite efforts to pivot and diversify its offerings, the company couldn’t turn things around and eventually decided to seek bankruptcy protection,
Sailor Said 19 that it had selected Binance.US as the most advantageous and highest bidder after considering all possibilities. According to the release, the proposal, which will allow Voyager to “unlock” user funds, will also seek to restore crypto assets as commodities for consumers.
in September, FTX wins bidding war for Voyager $1.4 billion in bid assets, of which $51 million is in cash. However, trading fell in November due to the collapse of FTX.
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