Binance.US has reversed its agreement to purchase $1 billion worth of assets from bankrupt cryptocurrency brokerage Voyager Digital, according to a tweet from the company.
The report attributed the decision to “the hostile and uncertain regulatory climate in the United States.”
Voyager, the Voyager Official Committee of Unsecured Creditors, and the United States government reached a purchase agreement on April 19.
The transaction was halted on March 28 by a judge who granted an emergency stay while the United States Department of Justice appealed Voyager’s bankruptcy plan.
Before Binance, both Voyager and the Voyager Official Committee of Unsecured Creditors expressed their dismay at the development.US announced. The Official Committee of Unsecured Creditors for Voyager tweeted:
The Committee is incredibly disappointed with this decision and is investigating potential claims against Binance.US.
To its credit, Binance.The United States announced it would “exercise its right to terminate the asset purchase agreement.”
“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 United States has introduced an unpredictable operating environment impacting the entire American business community,” the exchange stated.
It is still being determined what prompted Binance.US to alter its mind, given that it was already familiar with the U.S. regulatory landscape. The crypto community on Twitter expressed some sympathy for Binance—the U.S.
“I’m amazed Binance has lasted this long. Stephen Ellis_PR tweeted, “With all the harassment from the government, I would have quit a long time ago.” Others were more vehement in their criticism.
1/ Today we received a letter from https://t.co/yG7Airmib5 terminating the asset purchase agreement. 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.
— Voyager (@investvoyager) April 25, 2023
Everyone does not share this sentiment. “Really, after having all of our consumer information? Therefore, you paid 10 million dollars for us. I believe you have a good bargain on this,” Donate replied to Binance—the U.S.
https://t.co/AZwoBOgsqS has made the difficult decision to exercise its right to terminate the asset purchase agreement with Voyager.
While our hope throughout this process was to help Voyager's customers access their crypto in kind, the hostile and uncertain regulatory climate…
— Binance.US 🇺🇸 (@BinanceUS) April 25, 2023
Voyager and the creditors’ committee have stated that they will now work on a “toggle option” for directly distributing cash and cryptocurrency to customers via the Voyager platform.
On July 5, Voyager declared bankruptcy.