Binance’s attempt to buy Voyager Digital’s assets could be blocked by the US government.
A Binance spokesperson said it was “xenophobic”.
Binance’s Initiative Might Be Blocked
Binance’s attempt to buy the assets of the bankrupt Voyager Digital was complicated by the possibility that the US government would reject it.
Acquisitions of companies operating in the USA by an entity in another country are reviewed by the Committee on Foreign Investments in the United States (CFIUS). The institution conducts research on whether the agreements made pose a national security risk.
In the Donald Trump administration, CFIUS approached the acquisitions of China-based companies more moderately. Joe Biden, on the other hand, signed an executive order this week to block China’s technological investments in the US and limit its activities.
Although Binance CEO Changpeng Zhao was born in China, he grew up in Canada and is also a Canadian citizen. Zhao, opposing the allegations that he is Chinese, used the phrase “I am a Canadian citizen, period”.
Patrick Hillman, the exchange’s chief communications officer, said:
“Binance has invested in numerous American companies, both directly and through Binance Labs.
Binance has never been subject to official or unofficial investigation by CFIUS. Binance is a wholly owned Canadian company.”
Another Binance spokesperson, Jessica Jung, said that Hillman’s statements were false and that Binance is an “international company”, not Canadian.
Voyager Digital declined to comment on the matter.
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