• Binance.US has withdrawn from its planned $1 billion acquisition of Voyager due to the “hostile and uncertain” regulatory climate in the United States.
• Voyager will now distribute cash and crypto directly to its clients through its own platform after filing for bankruptcy in 2022.
• Despite court approval, Binance CEO Changpeng “CZ” Zhao hinted that the company’s decision may be due to regulatory pressure.
Binance Withdraws from Voyager Acquisition
Binance.US has withdrawn from its planned $1 billion acquisition of Voyager, citing the “hostile and uncertain” regulatory climate in the United States. Voyager, which filed for bankruptcy in 2022, will now distribute cash and crypto directly to its clients through its own platform.
Voyager Filed for Bankruptcy Protection
In the wake of the collapse of the FTX deal, Voyager struck a $1 billion buyout agreement with Binance.US. However, the acquisition faced strong opposition from regulators, including the Securities and Exchange Commission (SEC) and U.S. Attorney Damian Williams. Despite these challenges, the deal received court approval, but has now been terminated from the end of Binance US.
Voyager initially filed for a Chapter 11 bankruptcy protection plan in July 2022 (approved March 7, 2023), after crypto hedge fund Three Arrows Capital defaulted on a $650 million loan. The company then decided to auction off its crypto assets as part of its restructuring plan, with FTX emerging as the highest bidder. When FTX’s implosion forced Voyager to seek a new buyer,the company entered into negotiations with Binance US .
Regulatory Pressure Led to Termination
Binance CEO Changpeng “CZ” Zhao has previously hinted that the company’s sudden decision may be due to regulatory pressure.”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 U.S.,has introduced an unpredictable operating environment impacting entire American business community,”a spokesperson from Binance disclosed .
Voyager Customers Will Receive Crypto Through Platform
Voyager announced on Twitter that it had received a letter from Binance US “terminating asset purchase agreement.”Although announcement was “disappointing”for Voyagers ,company assured customers they would still receive their cash and crypto through direct distribution via Voyagers platform .
Committee Disappointed with Decision
Voyager Committee Unsecured Creditors also expressed disappointment upon learning termination deal with Binance . “The Committee is incredibly disappointed with this decision and is investigating potential claims against Binance US,”account tweeted .With Voyagers set directly distribute cash and cryptocurrency ,it looks like despite all odds customers will get what rightfully theirs .