Binance.US, the American arm of crypto exchange Binance, has abandoned a $1.3 billion deal to buy assets of bankrupt crypto lender Voyager Digital, blaming a “hostile and uncertain regulatory climate.”
The move marks another major setback for Voyager, as initially, an agreement to sell its assets to digital asset exchange FTX fell apart due to the collapse of the Sam Bankman-Fried-led company last year. Voyager filed for Chapter 11 bankruptcy in July 2022 and has been struggling to raise funds to repay creditors.
Binance.US had faced several issues in its efforts to acquire Voyager’s assets, including opposition from the U.S. SEC, which contended that the deal was not in compliance with federal securities laws.
“While this development is disappointing, our chapter 11 plan allows for direct distribution of cash and crypto to customers (a “toggle option”) via the Voyager platform,” tweeted Voyager in reaction to the termination of the deal.
Further, a committee of Voyager’s creditors said that it is “incredibly disappointed” by Binance.US’s decision to terminate the asset purchase agreement. The committee is “investigating potential claims” against the crypto firm.
Binance.US continues to face increased regulatory scrutiny, with the SEC alleging that the company is operating an unregistered securities exchange. Last month, the Commodity Futures Trading Commission (CFTC) filed a lawsuit against parent company Binance over the sale of unregistered crypto derivative products.
Meanwhile, Binance’s digital currency, Binance Coin (BNB-USD), has advanced 35.3% since the beginning of this year on improved investor sentiment about the crypto market.
