Veröffentlicht von • Binance.US has announced the withdrawal from its planned $1 billion acquisition of Voyager, citing the „hostile and uncertain“ regulatory climate in the United States.
• Voyager initially filed for a Chapter 11 bankruptcy protection plan in July 2022 after crypto hedge fund Three Arrows Capital defaulted on a $650 million loan.
• Despite court approval, Binance.US has now terminated the asset purchase agreement with Voyager and customers will receive their cash and crypto through a “direct distribution” via the Voyager platform.
Binance US Terminates Acquisition of Voyager
Binance.US has withdrawn from its planned $1 billion acquisition of Voyager, citing the „hostile and uncertain“ regulatory climate in the United States. In spite of court approval, Binance US has exercised its right to terminate the asset purchase agreement with Voyager, leaving it to distribute cash and crypto directly to its customers through its own platform.
Background on Voyagers Bankruptcy
Voyager originally filed for a Chapter 11 bankruptcy protection plan in July 2022 after crypto hedge fund Three Arrows Capital defaulted on a $650 million loan. As part of its restructuring plan, it then decided to auction off its crypto assets — with FTX emerging as the highest bidder — before entering negotiations with Binance US upon FTX’s implosion.
Regulatory Climate Creates Uncertainty
Despite strong opposition from regulators such as the Securities and Exchange Commission (SEC) and U.S. Attorney Damian Williams, court approval was given for the deal — however that has since been terminated by Binance US due to an „unpredictable operating environment.“ The company cited hostile and uncertain regulatory conditions in explaining their decision after CEO Changpeng „CZ“ Zhao hinted at potential pressure from authorities behind-the-scenes earlier this year.
Voyager Reacts To Termination Of Deal
Upon learning that Binance had withdrawn from their agreement, both Voyagers Committee of Unsecured Creditors expressed disappointment while also investigating potential claims against Binance US; meanwhile voyager assured their customers they would still receive their cash and crypto through a “direct distribution” though their own platform as opposed to via Binance US‘ services as originally intended.
Conclusion
In light of current market conditions which have made it increasingly difficult for companies like Binance to conduct business within certain jurisdictions like those found in America or Europe, investors should be aware of how rapidly changing regulations can affect any potential acquisitions or partnerships being negotiated by major players within this space moving forward into 2021 and beyond.