Voyager’s $1B Acquisition by Binance.US Terminated Due to Regulatory Pressure

• Binance.US has withdrawn from its planned $1 billion acquisition of Voyager, citing the „hostile and uncertain“ regulatory climate in the United States.
• Voyager had initially filed for Chapter 11 bankruptcy protection and then struck a $1 billion buyout agreement with Binance.US, but the deal was terminated due to strong opposition from regulators including the SEC and U.S. Attorney Damian Williams.
• Despite court approval, Voyager will now distribute cash and crypto directly to its clients through its own platform instead of through Binance.US.

Overview

Binance.US has withdrawn from its planned $1 billion acquisition of Voyager due to a „hostile and uncertain“ regulatory climate in the United States, forcing Voyager to distribute cash and crypto directly to its clients through its own platform instead of through Binance.US.

Voyager’s Bankruptcy Filing

Voyager initially filed for Chapter 11 bankruptcy protection in July 2022 after crypto hedge fund Three Arrows Capital defaulted on a loan worth $650 million dollars. The company then decided to auction off its crypto assets as part of its restructuring plan, with FTX emerging as the highest bidder until their implosion forced Voyager to seek a new buyer – which became Binance US when they entered into negotiations with the firm last week.

Regulatory Pressure

Binance CEO Changpeng „CZ“ Zhao hinted that the decision may have been due to regulatory pressure, with a spokesperson from Binance stating that “the hostile and uncertain regulatory climate in the U.S.“ led them to terminate their asset purchase agreement with Voyager” despite it having received court approval prior to termination.“

Distribution of Funds

Voyager announced that it would now be distributing cash and crypto directly to customers via their own platform after receiving a letter from Binance US terminating the asset purchase agreement while assuring customers they would still receive their funds soon afterwards..The Committee of Unsecured Creditors expressed disappointment upon learning that they would not be receiving funds via Binance US, however they are currently investigating potential claims against them as well as looking into other means by which customers can receive their funds safely..

Conclusion

Despite having obtained court approval prior to termination, Binance US ultimately withdrew from their proposed $1 billion acquisition of Voyager due to “hostile and uncertain” regulations in America – forcing Voyager themselves to become responsible for distributing cash and crypto directly to customers via their own platform instead