Binance.US Terminates Voyager Deal, Resulting in Distribution of Funds to Bankrupt Lender's Customers
After facing government scrutiny, Binance.US has terminated its agreement to purchase assets from Voyager Digital, a bankrupt crypto lender, as announced on Twitter; the plan was previously approved in bankruptcy court.
Because Bitcoin
April 25, 2023
The Block reported that Binance.US has cancelled its deal with Voyager Digital to purchase assets, citing the unpredictable regulatory climate in the US as the reason; instead, Voyager Digital will distribute cash and crypto to customers using its own platform through a “toggle option” as part of its restructuring plan approved by the bankruptcy court, according to a statement from Voyager Digital; Binance.US's agreement to purchase Voyager's assets had previously been approved by a bankruptcy court judge, and customers were expected to receive a 73% recovery of assets under the proposal, but that percentage could have dropped to 48% if claims from bankrupt crypto exchange FTX and its sibling Alameda Research were successful, and out of the 6% of creditors who voted on the proposed plan, 97% voted in favor.
Source: Twitter
The proposed plan, which aimed to allow Voyager customers to become Binance.US customers, faced rigorous government scrutiny that even led the Securities and Exchange Commission to disclose that their staff believed Binance.US was operating an unregistered securities exchange in the US (although staff opinions do not represent the view of the commission); the Official Committee of Unsecured Creditors in the Voyager case expressed deep disappointment in Binance.US's decision and may pursue legal action, as stated in a tweet, while Voyager and the committee aim to move forward quickly with self-liquidation through the toggle option in the Plan.
Source: Twitter
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