The committee has the authority to potentially block the deal if it deems such a transaction harmful to US interests
In a recently filed notice, the U.S. has indicated that Binance’s acquisition of Voyager may require a review by the Committee on Foreign Investment in the United States (CFIUS). If CFIUS determines that one or more of these transactions is subject to its jurisdiction and poses a national security risk, it will then analyze the risks associated with said transaction.
When a foreign investor proposes an acquisition or merger that would involve control of a U.S.-based company, it must first be reviewed by CFIUS to ensure that there are no U.S national security concerns exist. This process is voluntary and can take anywhere from 30 days to over a year depending on the particular transaction.
The committee also has the authority to block any such transactions it deems harmful to US interests if negotiations fail.
CFIUS plays a crucial role in protecting US technology, intellectual property, and critical infrastructure from exploitation by parties acting against US interests, whether foreign or domestic.
In a move deemed to offer customers of Voyager a route to access their funds, Binance.US, the American subsidiary of Binance, announced its purchase of Voyager Digital’s assets on Dec. 19 an amount of $1.022 billion. It initiated the deal by making a deposit of $10 million. The overall payment amounts to $20 million. The debt the company owes to its clients comprises the vast majority of the sum.
Voyager’s bankruptcy filing in July was followed by a deal with FTX, but the latter later ended up filing for bankruptcy itself.