Blockchain & Crypto

Binance Reverses Course and Abandons $1 Billion Voyager Deal

Binance.US crypto exchange has terminated the agreement to purchase the bankrupt crypto firm Voyager Digital.

Binance Reverses Course and Abandons $1 Billion Voyager Deal

Source: Pixabay.com

This decision was made a few weeks after federal regulators abandoned attempts to influence the deal in order to cancel it.

The court hearing on the termination of the agreement took place last Tuesday, April 25. The crypto exchange did not comment on the decision that canceled the transaction. Also, Binance.US demanded to return its deposit of $ 10 million within three days.

In a brief lawsuit, Voyager acknowledged the termination of the deal and indicated that it could collect a reverse termination fee from the crypto exchange.

A message was posted on the company’s official Twitter page stating disappointment with the decision of Binance.US. It is also indicated that the Chapter 11 plan allows for the direct distribution of cash and cryptocurrencies among customers. The company said that in accordance with the plan, a rapid transition will be made to return value to customers through direct distribution. In the coming days, the firm will provide more information about the next steps and actions that consumers need to take.

Binance.US is a separate entity from Binance Holdings, but the controlling stake in both cases is owned by Changpeng Zhao. The owner of the shares has recently faced claims from the Texas Securities Board, the U.S. Securities and Exchange Commission (SEC), the New York Department of Financial Services (NYDFS), and the U.S. Federal Trade Commission. He worked to promote this deal, which first became known in December last year. Then Changpeng Zhao reported that 97% of customers at Voyager voted to approve the crypto exchange plan.

The crypto company wrote on its Twitter page that in accordance with the terms of the Binance.US asset purchase agreement is obligated to destroy all client information and permanently close and delete any accounts created using Voyager customer information.

Voyager originally filed for Chapter 11 bankruptcy protection last July. Then the firm, in a statement to the Bankruptcy Court of the Southern District of New York, reported that it had to face a short-term bankruptcy of the bank after the borrower defaulted on a loan of $ 650 million.

Voyager has been trying to get out of bankruptcy and pay off its customers for almost nine months. The failed deal with Binance.US has become another failure on this path. In September last year, the FTX crypto exchange won the initial auction for the sale of Voyager assets, and soon after that went bankrupt.

As we have reported earlier, CFTC Seeks to Ban Binance From USA.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.