Binance.US has opted to withdraw from its $1 billion Voyager acquisition deal, citing a "hostile and uncertain" regulatory climate.
The Acquisition Deal Has Failed
Voyager creditors can't seem to get a break.
On Twitter Wednesday, the bankrupt crypto lending company announced that it had received a letter from Binance.US withdrawing and suggesting that it will terminate its purchase deal for US$1 billion voyager acquisition deal assets.
In July 2022, Voyager Digital filed for Chapter 11 bankruptcy, shortly after crypto hedge firm Three Arrows Capital defaulted on a $650 million loan to the company. As part of its restructuring plan, Voyager opted to auction off its crypto assets, with FTX emerging as the biggest bidder. When FTX imploded, Voyager sought a new buyer and reached a $1 billion buyout arrangement with Binance.US.
Binance.US's acquisition of Voyager assets was met with fierce criticism from regulators. The Securities and Exchange Commission and U.S. Attorney Damian Williams both filed requests to delay the buyout, which the court denied.
Binance CEO Changpeng "CZ" Zhao stated on Twitter that the company's unexpected decision was likely due to regulatory pressure. When cryptocurrency star Hsaka tweeted, "[In before] Binance pulling out of the Voyager deal is part of the conditions of an imminent settlement with the CFTC," Zhao replied with a shrug emoji.
"While our hope throughout this [acquisition] process was to help Voyager's customers access their crypto in kind, the hostile and uncertain regulatory climate in the U.S. has introduced an unpredictable operating environment impacting the entire American business community," a Binance spokesperson told crypto news outlet The Block.
Voyager stated that, by its court-approved restructuring plan, the company will now disburse cash and cryptocurrency directly to clients via its platform.
The author of this essay owned BTC, ETH, and several other crypto assets at the time of writing.
Join our WhatsApp Channel to get the latest news, exclusives and videos on WhatsApp
_____________
Disclaimer: Analytics Insight does not provide financial advice or guidance on cryptocurrencies and stocks. Also note that the cryptocurrencies mentioned/listed on the website could potentially be risky, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. This article is provided for informational purposes and does not constitute investment advice. You are responsible for conducting your own research (DYOR) before making any investments. Read more about the financial risks involved here.