Binance US Cancels $1 Billion Acquisition of Voyager
• Binance US has notified Voyager via letter of the termination of the purchase agreement.
• The $1 billion acquisition of Voyager Digital has encountered numerous obstacles, including opposition from federal regulators.
• Voyager has declared that it will distribute its remaining assets directly to customers through its platform.
The termination of Binance US’ $1 billion agreement to acquire Voyager Digital’s assets is the most recent development for the crypto lender, which is undergoing bankruptcy proceedings. In a letter sent to Voyager earlier today, Binance’s American subsidiary confirmed that the billion-dollar asset purchase agreement had been terminated.
Voyager will distribute the remaining assets directly to customers.
Voyager expressed disappointment on Twitter earlier today over Binance US’ decision to terminate the asset purchase agreement. According to its Chapter 11 plan, the bankrupt crypto lender intends to initiate self-liquidation immediately. The company will distribute its remaining cash and crypto assets directly to Voyager platform users. The Voyager Official Committee of Unsecured Creditors has stated that it will investigate potential claims against Binance US.
In a filing made earlier today in the United States Bankruptcy Court for the Southern District of New York, Voyager Digital acknowledged the termination of the agreement. The letter from Binance US to the bankrupt cryptocurrency lender did not specify the reason for the deal’s termination. The legal notice emphasized that since the purchase agreement was not executed until April 18, 2023, the exchange was no longer required to occur.
In a statement published on Twitter, Binance US disclosed that it made the “difficult decision to exercise its right to terminate the asset purchase agreement due to the current regulatory environment for the cryptocurrency industry in the United States.
“The hostile and uncertain regulatory climate in the United States has introduced an unpredictable operating environment that affects all American businesses.“
Less than a week after federal regulators in the United States gave up trying to suspend the deal through a court order, Binance US made the decision to cancel the deal. CEO Changpeng Zhao did not confirm nor deny a crypto influencer’s claim that the exchange’s decision to withdraw from the acquisition deal was a condition for a forthcoming settlement in the CFTC’s case against Binance. In an interview earlier today, CFTC Commissioner Kristin Johnson indicated that she had not ruled out the possibility of a settlement in the lawsuit and was hoping to find a “path forward” with the exchange.