• Binance.US has withdrawn from its planned $1 billion acquisition of Voyager due to a “hostile and uncertain” regulatory climate in the US.
• Voyager initially filed for bankruptcy protection in July 2022, and then struck a buyout agreement with Binance.US which received court approval but has now been terminated.
• Customers will instead receive cash and crypto directly through the Voyager platform via a “direct distribution”.
Binance Withdraws from 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Binance.US has withdrawn from its planned $1 billion acquisition of Voyager, citing the “hostile and uncertain” regulatory climate in the United States. Despite receiving court approval, Binance exercised its right to terminate the asset purchase agreement due to an unpredictable operating environment impacting American businesses.
Voyager Bankruptcy Protection & Buyout Agreement
Voyager filed for a Chapter 11 bankruptcy protection plan in July 2022 (approved March 7, 2023). In order to restructure their assets, they decided to auction off their crypto assets – FTX emerged as the highest bidder however this deal was later forced to collapse prompting them to enter negotiations with Binance US.
Regulatory Pressure Leads To Termination
Despite strong opposition from regulators such as the SEC and U.S Attorney Damian Williams, the deal received court approval but has now been terminated at the end of Binance US due to regulatory pressure. Binance CEO Changpeng Zhao hinted that this sudden decision may have been caused by regulatory pressure, additionally a spokesperson from Binance stated that it was due to an “unpredictable operating environment” impacting all American businesses.
Direct Distribution From The Voyager Platform
Voyager announced on Twitter that it had received a letter from Binance US “terminating the asset purchase agreement”. Although disappointing for Voyager customers can still receive their cash and crypto through direct distribution via their own platform. The Committee of Unsecured Creditors also expressed disappointment upon learning of this termination but is investigating potential claims against Binance US respectively.
Conclusion
The termination of this deal between Biance US and Voyagere reflects an unfortunate reality within America’s hostile regulatory climate – causing unpredictable operating environments which have had devastating repercussions on all businesses involved in this particular case study example