Yesterday, the insolvent cryptocurrency lender Voyager tweeted that it had received a letter from Binance.US notifying it that it would be terminating its purchase agreement of Voyager assets.
In July 2022, right after crypto hedge fund Three Arrows Capital defaulted on a $650 million debt to the firm, Voyager Digital filed for Chapter 11 bankruptcy protection.
Following that, Voyager decided to sell off its cryptocurrency holdings as part of its restructuring strategy, with FTX placing the highest bid. Voyager reached a $1 billion buyout agreement with Binance after FTX’s collapse prompted it to look for a new buyer.
Voyager’s attorneys stated in a court document on Tuesday that the company reserves all rights in relation to a $10 million good-faith deposit made by Binance.US to Voyager and a reverse-termination charge that Binance is obligated to pay.
Binance.US representative commented that the United States’ “hostile and uncertain regulatory climate” have presented considerable uncertainties for the entire industry — hence why they have decided to focus on providing a safe platform for their customers to participate in the digital asset economy.
According to Voyager’s court-approved reorganisation plan, it will now provide clients access to its own platform to receive cash and cryptocurrencies directly.
Regulators vehemently opposed Binance.US’s purchase of Voyager assets. The judge denied pleas to postpone the buyout made by the Securities and Exchange Commission and U.S. Attorney Damian Williams.
