The American division of the largest cryptocurrency exchange Binance decided to abandon the deal to buy the assets of the bankrupt crypto lending service Voyager Digital. The exchange cited the difficulties associated with regulatory uncertainty in the US.
A $1.3 billion deal to buy the assets of a bankrupt crypto lender would help investors a lot, but regulators apparently don’t care about their well-being and continue to harass crypto projects.
“Today we received a letter from Binance.US notifying us of the termination of the agreement to purchase our assets. This decision is disappointing, however, we have the opportunity to distribute the remaining funds and assets among the clients of the Voyager platform,” the statement Voyager Digital.
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
Binance.US confirmed this information and explained the reasons for its decision: “While we hoped throughout this process to help Voyager customers access their cryptocurrency, the hostile and uncertain regulatory climate in the United States has created an unpredictable operating environment affecting the entire American business community.”
It was planned that after the redemption of the assets of the crypto-lender by Binance.US, users will be able to return 73% of their funds.
In early July last year, two months after the collapse of the Terra crypto project, Voyager Digital suspended all trading, deposits, withdrawals, and loyalty rewards. On the same day, the company’s shares fell 26%. And the stock is down more than 97% since the start of the year.
Shortly before that, to protect client assets, Voyager received a $200 million cash and USDC loan, as well as a 15,000 bitcoin ($294 million) revolving line of credit from Alameda Research, which is owned by FTX CEO Sam Bankman-Fried (Sam Bankman-Fried). Fried).
On July 5, Voyager Digital filed for bankruptcy in a New York court under Article 11 of the US Bankruptcy Code. The company’s estimated liabilities range from $1 billion to $10 billion, and about 100,000 customers are believed to have been affected by the bankruptcy.
One of the broker’s clients was the large hedge fund Three Arrows Capital, which has invested in blockchain games such as Axie Infinity and Crypto Raiders. The firm owes about $650 million and also filed for bankruptcy in July.
In September, the FTX US exchange wanted to buy Voyager Digital’s assets. Then it was about the amount of $1.4 billion, and the FTX US rate turned out to be higher than that of Binance and Wave Financial. However, in November, FTX US went bankrupt along with the parent company, so the deal did not go through.
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