Binance.US slams the breaks on its deal with Voyager.
Crypto exchange Binance.US calls off its $1 billion asset acquisition deal with bankrupt crypto brokerage Voyager Digital.
According to the Twitter announcement shared on April 25th, Binance.US blamed "the hostile and uncertain regulatory climate in the United States."
Did you know?
Want to get smarter & wealthier with crypto?
Subscribe - We publish new crypto explainer videos every week!
What is Polkadot in Crypto? (DOT Animated Explainer)
In the tweet, Binance.US claimed that with the acquisition, it hoped to "help Voyager's customers access their crypto." However, the company claimed that the "unpredictable operating environment" in the US had its toll on the whole crypto industry.
Lastly, the company ended its announcement by noting that it aims to create a "safe platform where <its> customers can participate in the digital asset economy."
Both Voyager and the Voyager Official Committee of Unsecured Creditors expressed their disappointment over the collapsed deal through a series of tweets. In particular, the creditor committee noted:
The Committee is incredibly disappointed with this decision and is investigating potential claims against Binance.US.
At the same time, Voyager noted that after the deal fell through, it is now preparing to "return value to customers via direct distributions."
On top of that, the company highlighted that after terminating the deal, Binance.US has to "destroy all <Voyager> customer information" and "close and remove any accounts established with Voyager customer information."
The deal had faced several setbacks, with the most recent occurring on March 28th, when a judge granted an emergency stay following the US Department of Justice's appeal against Voyager's bankruptcy plan. However, on April 19th, all parties reached an agreement and green-lit the acquisition deal.
It is worth noting that Voyager filed for Chapter 11 bankruptcy on July 5th.
The $1 billion deal between Binance.US and Voyager is off the table due to the US's unclear and hostile regulatory environment, leaving Voyager alone in the battle to compensate its customers.
