Binance US Cancels $1 Billion Deal with Voyager Digital

Binance US Terminates Voyager Deal

Binance US has canceled its $1 billion agreement to acquire the assets of bankrupt crypto lender Voyager Digital. This decision compels Voyager Digital to initiate self-liquidation, distributing remaining assets directly to its customers.

Regulatory Challenges

The termination of the deal is attributed to the "hostile and uncertain regulatory climate" in the United States, which has created an unpredictable environment for businesses. This move follows a recent attempt by US federal regulators to suspend the agreement through a court order.

Potential CFTC Settlement

The Commodity Futures Trading Commission (CFTC) has not ruled out settling its complaint against Binance, suggesting a possible link between the deal's termination and an imminent settlement. However, Binance CEO Changpeng Zhao has not confirmed this connection.

Impact on Voyager Customers

Voyager Digital's reorganization plan, approved by the court, will allow clients to receive their remaining assets through a "toggle option" on their platform, offering either cash or cryptocurrency. Initially, Binance.US’s acquisition would have allowed customers to recover up to 73% of their funds. However, this could have been reduced to 48% if claims from FTX and Alameda Research succeeded.

Reaction from Creditors

The unsecured creditors’ committee expressed dissatisfaction with Binance’s decision and is contemplating legal action. The committee and Voyager are now focused on executing the self-liquidation process according to the outlined "toggle option."

Market Reaction

Binance's native cryptocurrency, BNB, saw a 0.22% drop following the termination announcement. Currently, BNB is priced at $337, with a market cap of approximately $52 billion.