Crypto giant Binance has decided to abandon the $1 billion dollar bid to acquire the assets of bankrupt crypto lender Voyager. The US arm of the largest crypto exchange fought for months with US regulators for approval of the acquisition.
As the reason for its termination of the deal Binance US cited “hostile and uncertain regulatory climate in the United States”. The decision to pull out of the purchase follows the recent charges brought by the CFTC or operating an illegal digital asset derivatives exchange.
Voyager announced the deal was stopped on Twitter, saying it received a letter from Binance. The crypto bank said it plans to use a “toggle option” in their bankruptcy plan to directly reimburse investors whose assets have been frozen since July.
Voyager stated:
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.
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.
