Binance.US Terminates Voyager $1B Asset Buy Deal

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Last Updated on April 26, 2023 by Bitfinsider

Voyager Digital, a bankrupt cryptocurrency lender, says it got a letter from Binance.US canceling the asset purchase agreement.

“Today, we received a letter from Binance.US terminating the asset purchase agreement,” Voyager tweeted on Tuesday. “While this development is disappointing, our Chapter 11 plan allows for direct distribution of cash and cryptocurrency to customers via the Voyager platform,” the tweet continues.

Binance.US blamed the termination on the “hostile and uncertain regulatory climate in the United States,” which has “introduced an unpredictable operating environment impacting the entire American business community,” according to a tweet.

The US authorities approved a substantial portion of the $1 billion deal in an April 20 filing, despite fears that the contract’s technical print would excuse violations of tax or securities law.

The agreement was approved by the vast majority of Voyager creditors who voted on it, as well as by bankruptcy judge Michael Wiles. A group representing creditors in bankruptcy proceedings said it was “incredibly disappointed” by the announcement and was “investigating potential claims” against Binance.US.

Lawyers for the United States government, including the Securities and Exchange Commission, had moved to halt the transaction, claiming that some of the assets involved, including potentially Voyager’s VGX token, could be unregistered securities. On Tuesday, VGX was selling about $0.3144, down about 11%.

Binance.US’ original December offer permitted it to withdraw if the agreement was not completed within four months. In a recent legal filing, Voyager’s counsel cautioned that if the purchase falls through, it may cost the estate and its over 1 million creditors an additional $100 million.

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