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Binance.US Backs Out of Voyager Deal
The much-contested deal had gotten approval from unsecured creditors in January 2023 and faced stiff opposition from the start. Binance.US released a statement on Tuesday, April 25th 2023, announcing it had terminated its asset purchase agreement due to the “hostile and uncertain” regulatory climate in the United States, which has impacted the “entire American business community”. Binance.US dedicated the statement to emphasizing its focus on building a secure platform for its customers to engage in the digital asset economy.
Voyager digital was the first to comment on events, posting a thread to Twitter.
The acquisition of Voyager Digital’s assets by Binance.US has had a tumultuous few months. Initial plans to have FTX complete the deal had fallen apart, in part due to regulatory opposition. This caused the US government to obtain a temporary injunction to further examine the deal, while Voyager itself tried to raise funds to repay creditors after declaring bankruptcy.
Despite these obstacles, the Official Committee of Unsecured Creditors finally approved the deal in January 2023. This decision is a crucial step in the former crypto lending and trading platform’s goal of rebuilding itself. Voyager, once a burgeoning industry giant, had 3.5 million users and over $5.9 billion in assets prior to its bankruptcy, which was caused by the mismanagement of immense loans to Three Arrows Capital.
However, the Voyager deal’s resolution comes at a time when the US is increasingly hostile to the cryptospace. Coinbase, one of the industry’s dominant players, has even gone so far as to shift part of its operations to Bermuda to avoid arbitrary SEC crackdowns. Many other exchanges and firms might soon follow Coinbase’s lead as SEC Chair Gensler continues to crack down on the crypto industry.
It’s still uncertain what the future holds for Voyager, but one thing is clear: with such an uncertain and hostile regulatory climate in the United States, Binance.US is likely to be very cautious when considering future acquisitions and investments.