Binance.US has backed out of its agreement to purchase $1 billion of bankrupt cryptocurrency brokerage Voyager Digital assets, the company announced in a tweet. It laid the blame for the move on “the hostile and uncertain regulatory climate in the United States.”
Voyager, the Voyager Official Committee of Unsecured Creditors and the U.S. government reached an agreement on April 19 for the purchase to go through. The deal had been blocked on March 28 by an emergency stay granted by a judge while the U.S. Department of Justice appealed Voyager’s bankruptcy plan.
Voyager and the Voyager Official Committee of Unsecured Creditors both tweeted their dismay at the development shortly before Binance.US made its announcement. The Voyager Official Committee of Unsecured Creditors tweeted:
“The Committee is incredibly disappointed with this decision and is investigating potential claims against Binance.US.”
For its part, Binance.US stated that it had decided to “exercise its right to terminate the asset purchase agreement.”
“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 United States has introduced an unpredictable operating environment impacting the entire American business community,” the exchange said.
It is unclear what prompted Binance.US’ change of heart, as it was certainly already familiar with the U.S. regulatory environment. The Twitter crypto community reacted with some sympathy for Binance.US.
“I’m surprised Binance lasted as long as it did. I would’ve bailed a long time ago with all the harassment from the gov,” StephenEllis_PR tweeted. Others were more adamant in their condemnation.
I’m surprised Binance lasted as long as it did. I would’ve bailed a long time ago with all the harassment from the gov.
— ᴾᵘᵉʳᵗᵒ ᴿⁱᶜᵒ (@StephenEllis_PR) April 25, 2023
That feeling was not universal, however. “Really, after you have all our information as customers? So you paid 10 million for us. I say you got a deal on this,” donterw responded to Binance.US.
Really, after you have all our information as customers? So you paid 10 million for us. I say you got a deal on this.
— Rashawn (@donterw) April 25, 2023
Voyager and the creditors’ committee both said they would now work on the “toggle option” of distributing cash and crypto to customers directly via the Voyager platform.
Voyager declared bankruptcy on July 5.