Binance.US Cancels Buyout Agreement with Voyager Digital

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The bankrupt crypto lender, Voyager Digital has announced on Twitter that it received a letter from Binance.US to terminate its assets purchase deal. 

Following the announcement, Voyager has asked Binance.US to delete all its clients’ data it had previously given the company. Additionally, the bankrupt crypto lender also asked Binance.US to close all accounts that were created with its customers’ information. Notably, this request is appropriate because it falls within the parameters of the purchase agreement.

Interestingly, Binance.US’s original December offer permitted it to withdraw if the transaction was not completed within four months.

Binance Provides Rationale for Cancelation

In response to the announcement, Binance.US asserts that its decision to terminate the assets purchase deal with Voyager was a difficult one.

However, the firm stated that it was forced to do so due to the volatile and unfriendly crypto regulatory environment in the US.

Details of the Agreement

The Binance.US bid for assets of Voyager, which was expected to set a clear path forward for Voyager customers is valued at approximately $1.022 billion. 

Remarkably, the deal comprises the fair market value of Voyager’s crypto portfolio and an additional consideration equal to $20 million of incremental value

Oppositions to the Buyout Deal

Interestingly, the news does not come as a shock to many. In an earlier report, the CEO of Binance, Changpeng Zhao hinted that his firm may pull out from the deal due to increasing regulatory scrutiny its firm has received since it began building ties to acquire Voyager.

Notably, the US Securities and Exchange Commission (SEC) objected to the agreement. At the time, the regulator questioned the capabilities of Binance.US to purchase assets of such magnitude.

Similarly, the Texas State Securities Board and the Department of Banking also disapproved of the purchase deal. The Texas regulators contend that Binance.US’s restructuring plan failed to appropriately notify unsecured creditors that they might only be entitled to a 24%–26% recovery rather than the 51% under Chapter 7.

Voyager Looks Ahead

While the news has come as a disappointment for Voyager, the bankrupt firm has said it would continue to return value to its customers. 

Specifically, under its Chapter 11 bankruptcy plan, Voyager said customers will be permitted to receive the direct distribution of cash and crypto through the Voyager platform.

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