Binance US Terminates $1B Voyager Acquisition Deal

by Tony Mormile

A spokesperson for the exchange claimed the decision was prompted by regulatory uncertainty in the United States.

Key Takeaways

  • Binance.US is pulling out of the Voyager acquisition deal.
  • The company blamed the “hostile and uncertain regulatory climate in the U.S.” for the decision.
  • Voyager will distribute cash and crypto to its customers through its own platform.

Binance.US has decided to pull out of its $1 billion acquisition deal for Voyager, citing a “hostile and uncertain” regulatory environment.

Acquisition Deal Nuked

Voyager creditors can’t catch a break.

The bankrupt crypto lending company announced on Twitter yesterday that it had received a letter from Binance.US indicating that it would terminate its purchase agreement of Voyager assets.

Voyager Digital filed for Chapter 11 bankruptcy protection in July 2022, shortly after crypto hedge fund Three Arrows Capital defaulted on a $650 million loan to the company. Voyager subsequently decided to auction 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 struck a $1 billion buyout deal with Binance.US.

The acquisition of Voyager assets by Binance.US met fierce opposition from regulators. Both the Securities and Exchange Commission and U.S. Attorney Damian Williams filed motions to delay the buyout, which were rejected by the court. 

Binance CEO Changpeng “CZ” Zhao hinted on Twitter that Binance’s sudden decision may indeed have been due to regulatory pressure. When crypto personality Hsaka tweeted “[In before] Binance pulling out of the Voyager deal is part of the conditions of an imminent settlement with the CFTC,” Zhao responded to the post with a shrug emoji.

“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 the U.S. has introduced an unpredictable operating environment impacting the entire American business community,” a Binance spokesperson told crypto news outlet The Block.

Voyager indicated that, per its court-approved restructuring plan, it will now distribute cash and crypto directly to clients through its own platform. 

Disclosure: At the time of writing, the author of this piece owned BTC, ETH, and several other crypto assets.

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