Binance.US, the American division of the global cryptocurrency exchange Binance, has walked away from its deal with the purchase of $1 billion worth of assets from the defunct cryptocurrency brokerage Voyager Digital.
However, a previous agreement for the purchase’s completion had been concluded between Voyager, the Voyager Official Committee of Unsecured Creditors, and the US government. The sale was initially halted by an emergency stay issued by a judge while the US Department of Justice challenged Voyager’s bankruptcy plan.
At the time, Voyager pointed out that a delay may lead Binance.US to walk away from the agreement outright, and that eventually happened.
Voyager Reveals Its Disappointment
Shortly before Binance.US disclosed its own details, Voyager and the Voyager Official Committee of Unsecured Creditors both expressed disappointment with the information. But according to the Voyager Official Committee of Unsecured Creditors, they are “investigating potential claims against Binance.US.”
1/ Around 2 hours ago, https://t.co/5sjac1H4CW purported to terminate the asset purchase agreement with Voyager. The Committee is incredibly disappointed with this decision and is investigating potential claims against https://t.co/5sjac1H4CW.
— Voyager Official Committee of Unsecured Creditors (@VoyagerUCC) April 25, 2023
Moreover, the Committee stated that it is currently coordinating with Voyager to swiftly utilize the “toggle option” provided for under the Plan in order to proceed with self-liquidation.
“While this development is disappointing, our Chapter 11 plan allows for [the] direct distribution of cash and crypto to customers (a “toggle option”) via the Voyager platform,” Voyager said in a Tweet.
This option might enable customers to receive their funds in a more timely and efficient manner. Voyager has assured its customers that it will continue to work diligently to resolve the situation and provide updates as they become available.
Binance.US Blames Regulatory Uncertainty
Binance.US insisted that despite its best efforts to assist Voyager’s customers in getting access to their crypto assets all through the process, the unfriendly and unreliable regulatory setting of the country has created an unpredictable working atmosphere that has an impact on the entire American business community.
https://t.co/AZwoBOgsqS has made the difficult decision to exercise its right to terminate the asset purchase agreement with Voyager.
While our hope throughout this process was to help Voyager's customers access their crypto in kind, the hostile and uncertain regulatory climate…
— Binance.US 🇺🇸 (@BinanceUS) April 25, 2023
This move comes as a surprise to many in the crypto community, as Binance has been extending its operations in the United States and becoming familiar with the regulatory framework there. On the other hand, Voyager has been dealing with legal issues as well as financial problems after the collapse of Three Arrows Capital.
Despite the setback, Voyager is expected to continue with its plans to move forward with self-liquidation while also exploring other options for the sale of its assets.
