Binance.US, the American arm of the largest crypto exchange by trading volume, has terminated its
$1.3B acquisition deal with the bankrupt crypto lender Voyager Digital,
citing the hostile and uncertain regulatory climate in the U.S.
Voyager was informed about the decision through a four-paragraph legal notice sent by the U.S. subsidiary.
- Voyager said it would proceed with the Chapter 11 bankruptcy plan, distributing funds in cash and crypto directly to customers via its own platform.
- The bankrupt crypto lender added that it would provide more information about the process in the coming days.
- Binance.US
demanded its $10M deposit back within three days, while lawyers for
Voyager stated that the firm reserves all rights regarding a reverse
termination fee owed by Binance.US.
- The
decision marked the second failed acquisition deal for Voyager after an
auction won by the bankrupt crypto exchange FTX's U.S. arm, FTX US,
with a $1.4B agreement in September 2022.
- Binance.US'
deal faced opposition from many regulators in the U.S., including the
Department of Justice (DOJ), the New York State Department of Financial
Services (NYDFS), the Texas State Securities Board, the Securities and
Exchange Commission (SEC), and the Federal Trade Commission (FTC).
- The
regulators' objections were mainly based on the concerns about a
potential relationship of Binance.US with Binance.com and the
transaction's potential to include the sale of unregistered securities, including Voyager's native token VGX under investigation.
- Voyager Digital filed for Chapter 11 bankruptcy in July 2022, nearly four years after its launch.
- Binance.US
signed a deal with Voyager to acquire its assets for $1.3B in December
following the collapse of the deal with FTX due to FTX's bankruptcy in November.
- If
the deal had proceeded, it would have allowed Voyager creditors to
compensate 50-73% of their holdings by applying for a refund through the
Binance.US platform.
- The sale was expected to result in a $100M more gain for customers than a possible liquidation.
