Binance.US has called off its deal to purchase Voyager Digital’s assets, according to a statement from the bankrupt crypto lender. Instead, Voyager Digital will distribute cash and cryptocurrency to customers using its own platform as part of a “toggle” that was written into its court-approved restructuring plan. Binance.US cited the U.S. regulatory climate as the reason for the termination of the deal. The company said it had hoped to help Voyager’s customers access their crypto in-kind, but the “hostile and uncertain regulatory climate in the U.S. has introduced an unpredictable operating environment impacting the entire American business community.”
The sale to Binance.US had been approved by a bankruptcy court judge last month, and customers were expected to receive a 73% recovery of assets under the proposal. However, that percentage could have dropped to 48% if claims from bankrupt crypto exchange FTX and its sibling Alameda Research were successful. Of the 6% of creditors who voted on the proposed Voyager plan, 97% voted in favor.
The plan would have allowed Voyager customers to become Binance.US customers, but it faced significant government scrutiny, including allegations by the Securities and Exchange Commission that Binance.US is operating an unregistered securities exchange in the U.S. Staff opinions do not reflect the view of the commission. The Official Committee of Unsecured Creditors in the Voyager case said it was “incredibly disappointed” by the move and may pursue legal action. The Voyager bankruptcy case was filed in the U.S. Bankruptcy Court for the Southern District of New York.