- Binance.US has reportedly terminated its deal for assets of Voyager Digital.
- The $1 billion deal had been approved by a US court.
- The price of VGX, the native Voyager token, fell more than 10% after the news.
Binance.US has terminated its acquisition deal for the assets of Voyager Digital, according to a tweet posted on the bankrupt crypto lender’s Twitter account.
“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,” the announcement read.
1/ Today we received a letter from https://t.co/yG7Airmib5 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 (@investvoyager) April 25, 2023
The Voyager token VGX fell more than 10% after the news, trading to lows of $0.317.
The purchase agreement for Voyager assets has been somewhat on and off, with Binance.US first being blocked from the deal by US authorities before a court allowed it to proceed. Despite the latest setback, the Voyager Chapter 11 plan team says the key is to return value to the platform’s customers.
“Consistent with the plan, we will now move swiftly to return value to customers via direct distributions. We will provide more information on next steps and any actions customers need to take in the coming days,” the tweet read.
Voyager filed for bankruptcy in July 2022 after a market turmoil amid contagion forced it to halt withdrawals.
Binance.US had not released a statement on the development at the time of going to press.
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On March 22, 2021, Binance.US announced the termination of their US$1 billion agreement to acquire the assets of blockchain-based investment platform Voyager Digital (Canada) Ltd.
The agreement to purchase Voyager Digital’s retail brokerage and trading platform, made in November 2020, was called off due to reasons beyond both parties’ control. Binance.US CEO, Catherine Coley, stated that “the adjusted terms of the transaction were no longer viable for Binance.US in light of the new market environment. We will continue to explore and develop new opportunities to create value for our customers and partners alike.”
Voyager Digital (Canada) Ltd., founded in 2018, is a publicly listed Canadian digital asset platform offering consumers and businesses access to an industry-leading cryptocurrency app. Following the decision, Voyager Digital’s representative said, “Voyager believes the termination of the Transaction Agreement creates a unique opportunity for the company to capitalize on the company’s leading position in the U.S. digital asset market and the technology and infrastructure that it has built in the U.S. digital asset market since launching.”
Binance.US is the United States arm of major crypto exchange Binance. Binance.US currently offers trading for Ethereum, Bitcoin, Bitcoin Cash, Litecoin, XRP, and USD Coin, as well as other digital assets eligible for trading pairs. It is available for the majority of U.S. states and territories.
It is unclear how the termination of the deal between Binance.US and Voyager Digital (Canada) Ltd. will impact both companies, however, it is likely that the development will be further explored in the coming months.