Binance US Terminates $1 Billion Deal To Acquire Voyager

• Binance US has sent a letter to Voyager informing it of the termination of the purchase deal. 
• The $1 billion deal to acquire Voyager Digital has faced multiple hurdles including objections from federal regulators. 
• Voyager has stated that it will directly distribute its remaining assets to customers via its platform. 

The termination of Binance US’ $1 billion deal to acquire the assets of Voyager Digital has become the latest development for the crypto lender, which is currently undergoing bankruptcy proceedings. Binance’s American arm drove the final nail into the billion-dollar asset purchase deal earlier today by sending a letter to Voyager, revealing that the deal had been called off. 

Voyager Will Directly Distribute Remaining Assets To Customers

In a Twitter thread earlier today, Voyager stated that it was disappointed by Binance US’ decision to terminate the asset purchase agreement. The bankrupt crypto lender now plans to initiate self-liquidation, in line with its Chapter 11 plan. The firm will directly distribute its remaining cash and crypto assets to customers using the Voyager platform. In the meantime, the Voyager Official Committee of Unsecured Creditors stated that it will explore potential claims against Binance US. 

Voyager Digital acknowledged the termination of the deal in a filing made earlier today in the U.S. Bankruptcy Court for the Southern District of New York. Binance US’ letter to the bankrupt crypto lender didn’t mention the reason for the termination of the deal. The legal notice did highlight the fact that since the purchase agreement hadn’t been executed till April 18, 2023, the exchange was no longer bound to go through with it. 

In a statement posted on Twitter, Binance US revealed that it made the “difficult decision to exercise its right to terminate the asset purchase deal due to the current regulatory landscape for the crypto industry in the United States. 

While our hope throughout this process was to help Voyager’s customers access their crypto in kind, the hostile and uncertain regulatory climate in the United States has introduced an unpredictable operating environment impacting the entire American business community.”

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Binance US’ decision to call off the deal comes less than a week after federal regulators in the United States stopped their efforts to get the deal suspended through a court order. Interestingly, when a crypto influencer suggested that the exchange’s decision to pull out of the acquisition deal was part of the conditions for an imminent settlement in the case filed against Binance by the CFTC, CEO Changpeng Zhao neither confirmed nor denied the influencer’s hunch. CFTC Commissioner Kristin Johnson indicated in an interview earlier today that she hadn’t ruled out the possibility of a settlement in the lawsuit and was hoping to find a “path forward” with the exchange. 

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