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Crypto News

Voyager Digital Hit With Termination Letter From Binance.US For $1B Asset Buyout Deal

Author

Jay Solano

Tags

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Reading time

2 mins
Last update

Author

Jay Solano

Tags

Reading time

2 mins
Last update

voyager

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Voyager Digital, a defunct cryptocurrency lender, claimed to have received a letter from Binance.US terminating the asset purchase agreement.

Voyager announced on Tuesday via Twitter that it had received a letter from Binance.US, notifying them of the termination of their asset purchase agreement. Despite this disappointing development, Voyager’s Chapter 11 plan entitles the direct distribution of cash and cryptocurrencies to customers through their platform, as mentioned in the tweet.

In a tweet, Binance.US stated that the asset purchase agreement was terminated due to the “hostile and uncertain regulatory climate in the United States,” which has resulted in an “unpredictable operating environment” that has impacted not only Binance.US but also the entire American business community.

Despite concerns that the contract’s fine print would excuse tax or securities law violations, the U.S. government approved a substantial portion of the $1 billion deal in a filing on April 20.

Most of Voyager’s creditors voted in favor of the agreement, and bankruptcy judge Michael Wiles approved it. A committee representing creditors in bankruptcy proceedings tweeted that it was extremely disheartened by the news and investigating potential claims against Binance. US.

U.S. government attorneys, including the Securities and Exchange Commission, argued that some of the assets engaged in the transaction, such as Voyager’s VGX token, might be unregistered securities. 

Attorneys representing Voyager in a recent legal filing have cautioned that the termination of the asset purchase agreement with Binance.US could result in additional costs of $100 million to the estate, which has over 1 million creditors. Binance.US had the option to withdraw from the agreement initially proposed in December if it still needed to be finalized within four months.

Confronted with Twitter speculation that the deal’s cancellation was related to an upcoming settlement with the Commodity Futures Trading Commission, which has sued Binance’s parent exchange over the sale of unregistered crypto derivative products, CEO Changpeng Zhao responded with a shrugging emoji.

https://twitter.com/cz_binance/status/1650941963955236887