- Binance US cancels $1 billion deal to acquire assets of bankrupt crypto lender Voyager Digital.
- Voyager Digital to initiate self-liquidation, directly distributing remaining assets to customers.
- Following the termination news, Binance’s native cryptocurrency, BNB, experienced a 0.22% drop.
According to a letter sent by Binance US to insolvent crypto lender Voyager Digital, the $1 billion deal to buy Voyager’s assets has been terminated. Voyager announced the development in a Twitter thread, stating its intention to initiate self-liquidation as per its Chapter 11 plan.
In a statement on Twitter, Binance US explained the termination, saying, “the hostile and uncertain regulatory climate in the United States has introduced an unpredictable operating environment impacting the entire American business community.” The move comes a week after US federal regulators stopped their efforts to get the deal suspended through a court order.
In an interview, Kristin Johnson, commissioner of the Commodity Futures Trading Commission (CFTC), said that the CFTC had not ruled out settling its complaint against Binance and that it hoped to find a “path forward” with the exchange. The deal’s termination may be linked to an imminent settlement in the case filed by the CFTC against Binance. However, Binance CEO Changpeng Zhao has neither confirmed nor denied this possibility.
Following the court-approved reorganization plan, Voyager Digital will now allow clients to receive cash or cryptocurrency through a “toggle option” on their platform. Previously, Binance.US’s acquisition would have allowed Voyager customers to recover up to 73% of their funds, but this amount could have been reduced to 48% if claims from FTX and Alameda Research were successful.
The unsecured creditors’ committee expressed extreme displeasure with the decision, indicating that it was considering legal action against Binance. Meanwhile, the committee and Voyager are concentrating on carrying out self-liquidation in accordance with the “toggle option” stated in the plan.
Following the termination news, Binance’s native cryptocurrency, BNB, experienced a 0.22% drop within an hour, with the current price at $337 and a market cap of approximately $52 billion.
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