Binance.US has stopped a deal that would have allowed it to buy assets from failing cryptocurrency lender Voyager.
The termination marks the second time that a deal to acquire Voyager’s assets has not been completed.
$1B deal falls through
Voyager Revealed Binance.US Served Struggling Crypto Lender a letter on April 25, 2023, rescinding the deal to buy its assets, describing the latest development as “disappointing.”
Binance.US, which also confirmed the termination, did not indicate a reason for pulling the plug, but highlighted regulatory issues in the United States.
“While our hope throughout this process was to help Voyager customers access their in-kind crypto, the hostile and uncertain regulatory climate in the United States has introduced an unpredictable operating environment that impacts the entire American business community. “.
Binance.US’s attempt to buy Voyager’s assets, which was favored by most of the crypto lender’s clients, was met with opposition from the US Securities and Exchange Commission (SEC) and the Department of Justice .
The Commodity Futures Trading Commission (CFTC) has also sued international entity Binance, alleging that the company solicited US clients in violation of federal trade laws.
Although the courts recently approved the continuation of the purchase agreement between Binance US and Voyager, the termination of Binance could be another blow to Voyager clients who have witnessed the failure of two asset purchase agreements.
Prior to Binance.US, cryptocurrency exchange FTX.US, the US arm of international firm FTX, won the October 2022 bid to buy Voyager’s assets. However, the deal fell through following FTX’s collapse and eventual bankruptcy in November 2022.
Voyager focuses on reimbursing affected customers
Meanwhile, Voyager said the next course of action would be to directly reimburse customers whose assets were frozen in July 2022, under its Chapter 11 plan.
“According to the plan, we will now move quickly to return value to customers through direct distributions. We will provide more information on next steps and any actions customers need to take in the coming days.”
The distressed cryptocurrency lender also said that Binance will have to permanently destroy all Voyager customer information and close any accounts set up with such information, per the terms set out in the asset purchase agreement.
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This post Binance.US Pulls Out of $1 Billion Asset Purchase Agreement with Voyager
was published first on https://cryptopotato.com/binance-us-pulls-out-of-1-billion-asset-purchase-deal-with-voyager/
