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Binance US Abandons $1 Billion Voyager Acquisition
According to a letter sent by Binance US to insolvent crypto lender Voyager Digital, the $1 billion deal to buy Voyager’s assets has been terminated. Voyager announced the development in a Twitter thread, stating its intention to initiate self-liquidation as per its Chapter 11 plan.
In a statement on Twitter, Binance US explained the termination, saying, “the hostile and uncertain regulatory climate in the United States has introduced an unpredictable operating environment impacting the entire American business community.” The move comes a week after US federal regulators stopped their efforts to get the deal suspended through a court order.
In an interview, Kristin Johnson, commissioner of the Commodity Futures Trading Commission (CFTC), said that the CFTC had not ruled out settling its complaint against Binance and that it hoped to find a “path forward” with the exchange. The deal’s termination may be linked to an imminent settlement in the case filed by the CFTC against Binance. However, Binance CEO Changpeng Zhao has neither confirmed nor denied this possibility.
Following the court-approved reorganization plan, Voyager Digital will now allow clients to receive cash or cryptocurrency through a “toggle option” on their platform. Previously, Binance.US’s acquisition would have allowed Voyager customers to recover up to 73% of their funds, but this amount could have been reduced to 48% if claims from FTX and Alameda Research were successful.
Read More: https://www.investing.com/news/cryptocurrency-news/binance-us-abandons-1-billion-voyager-acquisition-3064595
According to a letter sent by Binance US to insolvent crypto lender Voyager Digital, the $1 billion deal to buy Voyager’s assets has been terminated. Voyager announced the development in a Twitter thread, stating its intention to initiate self-liquidation as per its Chapter 11 plan.
In a statement on Twitter, Binance US explained the termination, saying, “the hostile and uncertain regulatory climate in the United States has introduced an unpredictable operating environment impacting the entire American business community.” The move comes a week after US federal regulators stopped their efforts to get the deal suspended through a court order.
In an interview, Kristin Johnson, commissioner of the Commodity Futures Trading Commission (CFTC), said that the CFTC had not ruled out settling its complaint against Binance and that it hoped to find a “path forward” with the exchange. The deal’s termination may be linked to an imminent settlement in the case filed by the CFTC against Binance. However, Binance CEO Changpeng Zhao has neither confirmed nor denied this possibility.
Following the court-approved reorganization plan, Voyager Digital will now allow clients to receive cash or cryptocurrency through a “toggle option” on their platform. Previously, Binance.US’s acquisition would have allowed Voyager customers to recover up to 73% of their funds, but this amount could have been reduced to 48% if claims from FTX and Alameda Research were successful.
Read More: https://www.investing.com/news/cryptocurrency-news/binance-us-abandons-1-billion-voyager-acquisition-3064595
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