US Government May Ban Binance from Voyager Digital Bankruptcy Bidding

The US Committee on Foreign Investment is beginning to block transactions that pose a threat to national security and may remove Binance from participation in the Voyager bankruptcy auction.

Last week, US President Joe Biden signed an executive order directing government agencies to block the ability of Chinese participants to invest in the country’s financial and technology companies. The most important element of the order directs the US Committee on Foreign Investment (CFIUS) to prevent Chinese investors from participating in sales of US companies. CFIUS is required to fully investigate whether the upcoming deal includes the purchase of a company that has access to confidential data of Americans, as well as how a foreign company or foreign government can use this information to their advantage.

Based on an executive order from the President of the United States, the Voyager Digital Auction Commission has asked Binance to provide additional financial collateral to its bid as insurance against CFIUS verification, which may delay or prohibit the acquisition. The potential for Binance to be removed from trading Voyager for political reasons has caused a sharply negative reaction from the official representatives of the exchange.

“Binance has invested in countless US companies both directly and through Binance Labs. Binance is an international company wholly owned by a Canadian citizen. The xenophobia underlying the very nature of our being alerted to possible issues with CFIUS is almost as shocking as the breach of privacy represented by the bankruptcy auction leak,” said Binance Communications Director Patrick Hillmann. ).

Formerly Binance CEO Changpeng Zhao published a statement in the official blog of the exchange, where he claims that Binance is not a Chinese company and all the rumors about the secret Chinese business management are not true.

The cryptocurrency lender’s assets are attracting takeover interest from major players in the cryptocurrency industry, according to the courts overseeing the Voyager Digital bankruptcy process. 22 potential buyers, including the Binance exchange, confirmed their participation in the auction, passed due diligence and held preliminary negotiations with the Bankruptcy Commission. The court must hold an auction and approve its results by September 29.