• Binance.US has withdrawn from its planned $1 billion acquisition of Voyager, citing the “hostile and uncertain” regulatory climate in the US.
• Voyager will now distribute cash and crypto directly to its clients through its own platform.
• Binance CEO Changpeng “CZ” Zhao has hinted that the company’s sudden decision may be due to regulatory pressure.
Binance Withdraws from Acquisition
Binance.US has withdrawn from its planned $1 billion acquisition of Voyager, citing the “hostile and uncertain” regulatory climate in the United States. Despite court approval of the buyout agreement, Binance.US exercised their right to terminate it due to regulatory challenges they faced throughout this process.
Voyager’s Restructuring Plan
Voyager filed for a Chapter 11 bankruptcy protection plan in July 2022 after crypto hedge fund Three Arrows Capital defaulted on a $650 million loan. The company then decided to auction off its crypto assets as part of its restructuring plan, with FTX emerging as the highest bidder. When FTX’s implosion forced Voyager to seek a new buyer, they entered into negotiations with Binance.US and struck a $1 billion buyout agreement.
The acquisition faced strong opposition from regulators, including the SEC and U.S Attorney Damian Williams. Binance CEO Changpeng “CZ” Zhao has previously hinted that the company’s sudden decision may be due to regulatory pressure stating: “While our hope throughout this process was to help Voyager’s customers access their crypto in kind, the hostile and uncertain regulatory climate in the U.S…has introduced an unpredictable operating environment impacting the entire American business community.”
Voyager Distribution Plan
Voyager announced on Twitter that they received a letter from Binance US terminating their asset purchase agreement however their customers will still receive their cash and crypto through a direct distribution via their own platform instead of being acquired by Binance US. However, The Committee of Unsecured Creditors expressed disappointment upon learning of this decision and is investigating potential claims against Binance US regarding it being terminated all together now rather than going through with it originally planned out by all parties involved before facing any legal issues or obstacles along the way .
In conclusion , despite receiving court approval for this deal , both sides have decided that it was best not go through with this deal at all given how much legal hurdles were present along each step . Therefore , voyager will take care of distributing cash & crypto directly to all clients while binance us moves foward without having gone through with this transaction altogether .