- Binance.US has announced it will no longer go through with the Voyager deal.
- The crypto exchange’s decision has sparked a fresh dispute.
- The recent events have wiped away the excitement that followed the deal’s approval last week.
Voyager was one of the first crypto firms to go bust in July 2022. As part of a lengthy and costly bankruptcy proceeding, the embattled crypto lender came close to inking a deal with Binance.US to allow customers to regain access to their funds for the first time in nearly a year.
Binance’s United States arm shocked the crypto world by deciding to pull out of the deal on Tuesday, April 25, citing an unfavorable regulatory climate in the U.S. in a Twitter statement. The breakdown of the agreement has put a $10 million escrow payment from the crypto exchange in dispute.
Binance.US and Voyager Clash?
In a letter to Voyager dated Tuesday, April 25, Binance.US expressed its desire to pull out of the deal to acquire Voyager assets worth $1 billion for a $20 million cash payment. The crypto exchange also requested that Voyager refund a $10 million payment it made in good faith toward securing the deal.
While Voyager has acknowledged Binance.US’s decision to terminate the agreement, it has no plans to return this payment. The bankrupt crypto lender has further requested that the crypto exchange pay an unspecified “reverse termination fee.”
"Debtors reserve all rights with respect to Binance.US's purported termination of the Asset Purchase Agreement including, without limitation, with respect to the reverse termination fee owed by Binance.US to the Debtors under the Asset Purchase Agreement and the $10 million Deposit made by Binance.US to the Debtors," Voyager lawyers said, confirming receipt of Binance.US's notice.
In a Twitter statement, Voyager’s unsecured creditors have also added that they are exploring avenues to take legal action against Binance.US.
The recent developments in the case have mainly come unexpectedly as Binance.US was in the clear to complete the deal.
A Roller Coaster Ride
Binance.US entered the agreement to purchase Voyager assets on Dec. 18, 2022. As part of the deal, Voyager customers would have been able to withdraw up to 73% of their holdings by opening Binance.US accounts.
The deal had faced significant resistance from several regulators, including the U.S. Securities and Exchange Commission, the Federal Trade Commission, and the Department of Justice.
Despite these efforts to stop Binance.US’s purchase of Voyager assets, the judge approved the deal last week to the now short-lived excitement of creditors.
With the crypto exchange pulling the plug, Voyager said it would switch to a “direct distribution of cash and crypto to customers.” Binance.US is also expected to destroy all customer information it obtained from the bankrupt lender.
On the Flipside
- Voyager initially agreed to sell its assets to FTX, but the deal fell apart after the exchange filed for bankruptcy.
Why You Should Care
The dispute could significantly affect how long customers have to wait for compensation and how much of their holdings they would likely be able to claim.
To read about the approval of the Voyager deal, see this:
Users Relieved as Binance-Voyager Deal Approved
To understand what is fueling the latest crypto market rally, check this out:
Bitcoin Rallies on News of First Republic Bank Troubles, Is There a Correlation?
- SEO Powered Content & PR Distribution. Get Amplified Today.
- PlatoAiStream. Web3 Data Intelligence. Knowledge Amplified. Access Here.
- Minting the Future w Adryenn Ashley. Access Here.
- Source: https://dailycoin.com/binance-us-x-voyager-deal-breakdown-leads-10m-escrow-deposit-dispute/
