Key Takeaways
- Binance.US pulls out of Voyager acquisition deal.
- The company blamed the “hostile and uncertain regulatory climate in the US” for the decision.
- Voyager will distribute cash and crypto to its customers through its own platform.
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Binance.US has decided to withdraw from the $1 billion acquisition deal for Voyager, citing a “hostile and uncertain” regulatory environment.
Get Deal Nuked
Voyager’s creditors can’t rest.
The bankrupt crypto lending company Office has partnered on Twitter yesterday that it received a letter from Binance.US indicating that they will terminate the agreement to purchase Voyager assets.
Voyager Digital filed for Chapter 11 bankruptcy protection in July 2022, shortly after crypto hedge fund Three Arrows Capital defaulted on a $650 million loan to the company. Voyager subsequently decided to auction off its crypto assets as part of its restructuring plan, with FTX emerging as the highest bidder. When FTX’s implosion forced Voyager to find a new buyer, the company struck a $1 billion buyout deal with Binance.US.
The acquisition of Voyager’s assets by Binance.US has met with strong opposition from regulators. Both the Securities and Exchange Commission and US Attorney Damian Williams filed motions to delay the buyout, which the court rejected.
Binance CEO Changpeng “CZ” Zhao explained on Twitter that Binance’s sudden decision may be due to regulatory pressure. When crypto personality Hsaka tweeted “[In before] Binance’s withdrawal from the Voyager deal is part of the conditions of an impending settlement with the CFTC,” Zhao said. ANSWERED in the post with the shrug emoji.
“While our hope throughout this [acquisition] The process is to help Voyager customers access their crypto in kind, the hostile and uncertain regulatory climate in the US introduces an unpredictable operating environment that affects the entire business community in America,” a Binance spokesperson told crypto news outlet The Block.
Voyager indicated that, according to the reorganization plan approved by the court, it will now distribute cash and crypto directly to clients through its own platform.
Disclosure: At the time of writing, the author of this piece owns BTC, ETH, and other crypto assets.
