Key Points:

  • Voyager says Binance US has sent notice to terminate its plan to acquire the bankrupt crypto lending platform.

  • The reason the deal was canceled was due to the strict regulatory environment of the United States, which had many obstacles during the acquisition process.

  • Voyager’s attorneys warned in a recent filing that the deal’s collapse could cost its more than 1 million creditors an additional $100 million.

Binance US has terminated its plans to acquire Voyager Digital. The lending platform has expressed frustration and may pursue legal action.

After announcing that it has reached almost all agreements with the US government, Binance US has sent a letter to cancel the acquisition of Voyager Digital.

1/ Today we received a letter from https://t.co/yG7Airmib5 terminating the asset purchase agreement. While this development is disappointing, our chapter 11 plan allows for direct distribution of cash and crypto to customers (a “toggle option”) via the Voyager platform.

— Voyager (@investvoyager) April 25, 2023

Binance.US cited the current regulatory environment as a reason to withdraw from the agreement with Voyager.

“Binance.US has made the difficult decision to exercise its right to terminate the asset purchase agreement with Voyager (…). While our hope throughout this process was to help Voyager’s customers access their crypto in kind, the US’s hostile and uncertain regulatory climate has introduced an unpredictable operating environment impacting the entire American business community.”

Instead, Voyager Digital will return cash and crypto to customers on its own through its platform, as the court restructuring plan has been approved. Voyager expressed disappointment in the tweet.

The Creditors Committee is upset and disappointed with this decision and is investigating potential claims against Binance US.

The initial terms allowed Binance.US to cancel the agreement within 4 months unilaterally. However, in a recent legal filing, Voyager’s lawyers warned that the deal’s failure could cost its more than 1 million creditors an additional $100 million.

The court authorized the deal to sell Voyager to Binance US last month at a valuation of $1.3 billion. Customers get 73% of their assets back, but this rate can be reduced to 48% if FTX and Alameda Research successfully appeal. Of the 6% of creditors who voted, 97% favored the Binance US – Voyager deal.

Binance US proposed to rescue Voyager last December and was approved by a New York court judge in March of this year. However, the SEC and the US Department of Justice spoke out against it, saying that Binance US is an unregistered stock exchange and its branch shows signs of violating US law. This scandal once made CEO Changpeng Zhao consider withdrawing from the deal.

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