Binance pulls out of $1.3 billion Voyager deal

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Binance pulls out of $1.3 billion Voyager deal

Binance.US has pulled out from a $1.3 billion deal to buy the bankrupt cryptocurrency lender Voyager.

Voyager's bankruptcy, which was filed in July, caused the deal to be announced at the end of last year. The exchange blamed the unstable and uncertain regulatory climate in the United States for creating an unstable environment where the deal could not move forward.

In late March, the Department of Justice argued that Voyager's bankruptcy plan had been violated. The government said that the bankruptcy protections and subsequent sale of the company's assets to Binance would allow Binance to approve illegal transactions and unregistered securities.

In March, a judge temporarily paused the deal to allow federal officials time to challenge the transaction. Voyager's lawyers said Binance would cancel the deal because of the delay.

Voyager said it would continue to move forward with the Chapter 11 process by directly distributing cash and crypto to its customers. In the coming days, the company will have more information on the process. Binance will be required to destroy any information about Voyager customers, the bankrupt lender said.

The 'crypto winter' was one of the numerous victims, and it collapsed last summer after the crash left it unable to honor withdrawals from its users. The sale process was difficult from the beginning as FTX won the bid for the company and subsequently collapsed.