Binance.US nukes Voyager deal, bankrupt lender will distribute cash to customers

Binance.US called off its deal to buy Voyager Digital’s assets, the bankrupt crypto lender said in a statement. 

Voyager Digital will instead distribute cash and crypto to customers using its own platform as part of a “toggle” that was written into its court-approved restructuring plan. 

“Today we received a letter from Binance.US 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 said in a tweet.

Binance.US cited the U.S. regulatory climate for creating uncertainty in the market.

"Binance.US has made the difficult decision to exercise its right to terminate the asset purchase agreement with Voyager," the firm said in a statement to The Block. "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."

The sale to Binance.US was approved last month by a bankruptcy court judge. Customers would have seen a 73% recovery of assets under the proposal, although that percentage could have dropped to 48% if claims from bankrupt crypto exchange FTX and its sibling Alameda Research are successful. Of the 6% of creditors who voted on the proposed Voyager plan, 97% voted in favor.

The plan, which would have allowed Voyager customers to become Binance.US customers, faced significant government scrutiny and even prompted the Securities and Exchange Commission to reveal that staff believe Binance.US is operating an unregistered securities exchange in the U.S. Staff opinions do not reflect the view of the commission.

Disappointed

The Official Committee of Unsecured Creditors in the Voyager case said it was “incredibly disappointed” by the move, and may pursue legal action. The Voyager bankruptcy case was filed in the U.S. Bankruptcy Court for the Southern District of New York.

“The committee is incredibly disappointed with this decision and is investigating potential claims against Binance.US,” it said in a tweet. “In the meantime, the Committee and Voyager are focused on promptly exercising the toggle option under the Plan to move forward immediately with a self-liquidation.

Update: This story has been updated with comment from Binance.