Binance.US, the popular cryptocurrency exchange, has canceled its $1 billion asset purchase deal with Voyager Digital Ltd. This move comes as a surprise and has generated uncertainty in the cryptocurrency market. The deal was supposed to help Binance.US expand its offerings by providing access to Voyager’s advanced trading technology and custodial services. The cancellation of the deal could signal a shift in Binance.US’s strategy or a setback for Voyager’s growth plans. The impact on both companies and the market as a whole remains to be seen.
Binance.US Pulls Out of Deal to Purchase Voyager Assets
Binance.US has terminated a deal to acquire the assets of Voyager, a bankrupt cryptocurrency lender. This marks the second time that such a deal has fallen through. Voyager revealed that Binance.US had sent a letter terminating the deal, describing the latest development as “disappointing.” Binance.US did not state a reason for pulling out of the deal, but did highlight the regulatory issues in the United States.
Binance.US had attempted to purchase Voyager’s assets, which was favored by a majority of the crypto lender’s customers, but was met with opposition by the US Securities and Exchange Commission (SEC) and the Department of Justice due to regulatory concerns in the US. Although the courts recently approved the purchase deal between Binance US and Voyager to continue, the termination from Binance could serve as another blow to Voyager customers who have witnessed the failure of two asset purchase agreements.
Voyager’s next course of action will be to directly reimburse customers whose assets were frozen in July 2022 based on its Chapter 11 plan. The distressed cryptocurrency lender also stated that Binance will have to permanently destroy all Voyager customer information and close any accounts set up with such information based on the terms set in the asset purchase deal.
Focused on Reimbursing Affected Customers
In response to the termination of the deal, Voyager is focused on directly reimbursing affected customers. The distressed cryptocurrency lender revealed that it would return value to customers via direct distributions based on its Chapter 11 plan. Voyager will provide more information on next steps and any actions customers need to take in the coming days.
Conclusion
The termination of the deal between Binance.US and Voyager to acquire assets is a setback for Voyager and its customers. Regulatory concerns have complicated the situation, with opposition from the SEC and the Department of Justice. Voyager aims to focus on reimbursing affected customers, and more information will be provided soon. It remains to be seen what other options Voyager will have going forward.