Binance.US, a significant cryptocurrency exchange, has called off its planned acquisition of the financially distressed crypto broker, Voyager Digital. The decision comes after receiving approval from unsecured creditors on April 19. The hostile and uncertain regulatory environment in the United States has been cited as the primary reason for this termination.
Binance.US Terminates Asset Purchase Agreement with Voyager Digital
In a statement released on Tuesday, Binance.US announced the termination of its asset purchase agreement with crypto lending platform Voyager Digital. The company cited the “hostile and uncertain” regulatory climate in the United States, which it claims affects the entire American business community.
Binance.US emphasized its commitment to providing a secure platform for customers to participate in the digital asset economy. Voyager Digital was the first to address the situation, posting a Twitter thread that said:
“Today we received a letter from Binance.US terminating the asset purchase agreement. While this development is disappointing, our Chapter 11 plan allows for direct distribution of cash and crypto to customers (a “toggle option”) via the Voyager platform. Consistent with the plan, we will now move swiftly to return value to customers via direct distributions. We will provide more information on next steps and any actions customers must take in the coming days.”
The History of Voyager’s Asset Acquisition
Binance.US had stepped in to acquire Voyager’s assets after a previous agreement with FTX fell through. The acquisition faced strong regulatory opposition, leading a federal judge to temporarily halt the deal last month, allowing the US government more time to pursue challenges. Since filing for bankruptcy last year, Voyager has been attempting to raise funds through asset sales to repay creditors.
The Official Committee of Unsecured Creditors had only approved the most recent deal on April 19, following a tumultuous few months.
Voyager Digital was once a flourishing crypto lending and trading platform, boasting 3.5 million users and managing $5.9 billion in assets. However, in July last year, the company filed for Chapter 11 after granting substantial unsecured loans to a failed hedge fund, Three Arrows Capital (3AC).
The failed Voyager deal is just another example of the United States’ increasingly hostile approach toward the cryptocurrency industry. Coinbase, one of the sector’s largest players, has recently moved its operations to Bermuda. As SEC Chair Gary Gensler continues his crackdown, other exchanges and companies will likely follow suit.
Conclusion
Terminating the asset purchase agreement between Binance.US and Voyager Digital is a stark reminder of the ongoing challenges the cryptocurrency industry faces in the United States.
As regulatory pressures mount, it remains to be seen how companies will adapt and whether the American crypto landscape will undergo significant changes.