Initial approval given for Voyager and Binance.US deal amid national security probe
Bankrupt crypto lender Voyager Digital received initial court approval for its proposal to sell its assets to Binance.US for $1.02 billion amid a national security probe Voyager is seeking to speed up.
On Jan. 10, United States Bankruptcy Judge Michael Wiles allowed Voyager to enter into the asset purchase agreement and seek creditor approval, but the sale will not become final until a future court hearing, according to a Jan. 11 Reuters report.
It comes as Voyager wants to expedite a review of its proposal to sell assets to Binance.US which could result in the deal being blocked or delayed.
Voyager’s attorney Joshua Sussberg noted during the court hearing that Voyager has been responding to questions from the Committee on Foreign Investment in the United States (CFIUS) and will address any concerns that CFIUS has which could see it oppose the transaction.
"We are coordinating with Binance and their attorneys to not only deal with that inquiry, but to voluntarily submit an application to move this process along," Sussberg said.
CFIUS is an inter-agency body that reviews foreign investments or acquisitions of U.S. companies for national security concerns.
If it determines that national security concerns regarding the deal are justified CFIUS can block or unwind the transaction or tell involved parties to alter the deal to mitigate concerns.
CFIUS filed a court notice on Dec. 30 indicating “one or more transactions contemplated” by Voyager could be subject to a review, resulting in possible blocks or delays.
Binance is reportedly being probed by the U.S. attorney's office over money laundering allegations, but its CEO, Changpeng "CZ" Zhao, previously stated Binance.US is a “fully independent entity” headquartered in California.
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