Binance.US, one of the largest cryptocurrency exchanges in the United States, has terminated a deal to acquire the assets of Voyager, a struggling cryptocurrency lender. This is the second time that a deal to purchase Voyager’s assets has fallen through, and the latest development has been described by Voyager as “disappointing.”
The deal was worth $1 billion, and it was favored by a majority of Voyager’s customers. However, the US Securities and Exchange Commission (SEC) and the Department of Justice opposed the deal, citing regulatory issues. Binance.US did not state a reason for terminating the deal, but it highlighted the unpredictable regulatory climate in the United States.
In recent months, the Commodity Futures Trading Commission (CFTC) sued Binance, alleging that the firm solicited US customers in contravention of federal trading laws. This has led to an uncertain operating environment that is impacting the entire American business community.
The Voyager Debacle
The termination of the deal by Binance.US could serve as another blow to Voyager customers who have already experienced the failure of two asset purchase agreements. Previously, FTX.US won the bid to purchase Voyager’s assets in October 2022, but the deal fell through following FTX’s collapse and eventual bankruptcy in November 2022.
Meanwhile, Voyager has stated that it will reimburse customers whose assets were frozen in July 2022 based on its Chapter 11 plan. The distressed cryptocurrency lender will move swiftly to return value to customers via direct distributions, according to the plan. Binance will also have to permanently destroy all Voyager customer information and close any accounts set up with such information, based on the terms set in the asset purchase deal.
Regulatory issues continue to pose challenges for the cryptocurrency industry, and this latest development highlights the unpredictable nature of the regulatory environment in the United States. The termination of the deal to acquire Voyager’s assets by Binance.US will have a significant impact on Voyager’s customers, who have already experienced multiple setbacks. It remains to be seen how the cryptocurrency industry will navigate these challenges going forward.