Binance US Cancels Deal To Acquire Voyager Digital’s Assets• April 26, 2023 1:53 pm • Comments
Voyager just revealed on Twitter that Binance.us has terminated its deal to acquire Voyager Digital’s assets for around $1 billion.
This was quite surprising given that the federal government had just recently approved the $1 billion acquisition deal despite the objection from the SEC.
This means that Voyager will have to continue its Chapter 11 bankruptcy plan which will require it to return assets back to the customers.
Voyager was one of the many crypto lenders in the past year that had to shut down as a result of the crypto market conditions and regulatory uncertainties.
With that being said, it seems that the crypto market has recently recovered despite the fall of many crypto players which will make the industry stronger in the long term.
OOF for #Voyager.😭💎🤲🏻 #Crypto #Binance $LUNC $BNB $Doge $SHIB $ETH $BTC pic.twitter.com/EA0xZ8SDah
— Mr. Diamondhandz1💎 (@MrDiamondhandz1) April 25, 2023
Taking to Twitter, Voyager noted the development as “disappointing,” but maintained their Chapter 11 plan.
Additionally, they stated they “will now move swiftly to return value to customers via direct distributions.” Subsequently, stating, “We will provide more information on the next steps and any actions customers need to take in the coming days.”
The Binance.US acquisition of Voyager has dominated headlines throughout the crypto space over the past few weeks. Specifically, the plan proposed by Binance.US would see the exchange pay around $20 million for repayments to Voyager customers. Now, the deal appears to be void.
The deal was previously halted by the US government as there was concern that laws had been violated. Alternatively, the government had approved the bid, setting in motion Binance’s acquisition of the remaining assets from the crypto lender.
As for the reason why Binance had decided to cancel and terminate the deal, Binance.us stated that the regulatory climate was the reason.
The company specifically stated that the regulatory climate within the United States was enough to cause the exchange to reconsider its acquisition of Voyager’s assets.
It seems that the move is to limit the amount of exposure the exchange has to US regulations in order to avoid future troubles or lawsuits.
Binance is not the only crypto company that has been making such moves recently as other popular exchanges such as Coinbase have also been exploring the same options.
It is clear that regulatory reform is the highest priority issue that must be fixed in order for crypto to continue to grow.
NEWS: Binance US won’t acquire Voyager’s assets.https://t.co/CPQz30U4hh
— Blockworks (@Blockworks_) April 25, 2023
Voyager Digital was taken by surprise when Binance.US canceled a $1 billion deal to buy its assets on Tuesday. The exchange was still showing interest as recently as last week, Voyager’s attorneys said in a New York courtroom on Wednesday.
Binance.US had made an offer for the bankrupt crypto lender in December but pulled out on Tuesday, citing an “uncertain regulatory climate” in the U.S.
“The debtors have been in constant contact and communication with Binance.US and as lately as this past Friday, Binance.US had expressed the desire to close the transaction as soon as possible,” Christine Okike of law firm Kirkland & Ellis, representing Voyager, told a bankruptcy court in the Southern District Court of New York, adding that “the debtors reserve all rights against Binance.US for breach” of the deal.
BREAKING: Binance US pulls out of deal to buy bankrupt crypto platform Voyager Digital pic.twitter.com/nAdwwS4PsZ
— Barchart (@Barchart) April 25, 2023
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