Binance.US signed an agreement in December last year to purchase certain assets of Voyager for a total consideration of $1.3bn, which includes a $10m good faith deposit, up to $15m reimbursement, and up to $20m of incremental value
Binance.US terminates deal with Voyager. (Credit: Pierre Borthiry - Peiobty on Unsplash)
US-based cryptocurrency exchange Binance.US has terminated its previously announced acquisition of certain assets from Voyager Digital, citing an uncertain regulatory environment.
In December last year, Binance.US signed an agreement to purchase certain assets of a cryptocurrency brokerage company for a total consideration of $1.3bn.
The consideration includes a $10m good faith deposit, up to $15m reimbursement to Voyager for certain expenses, and additional consideration of up to $20m of incremental value.
Through the sale of its assets, Voyager planned to raise funds to repay its creditors after it went bankrupt last year.
Voyager filed for relief under Chapter 11 of the US Bankruptcy Code after crypto hedge fund Three Arrows Capital defaulted on a $670m loan.
Under the terms of the acquisition, Binance.US would acquire the assets under a bankruptcy protection plan, which is subject to a creditor vote and approval by the Bankruptcy Court.
The deal provides Voyager with an option to immediately return the value to customers, if the transaction does not close before 18 April 2023 and an extension period of one month.
With the termination of the transaction, Voyager will exercise an option to return cryptocurrency and cash directly to its customers through its platform.
In September last year, the US business unit of FTX agreed to acquire Voyager for a total consideration of $1.4bn after winning a bankruptcy auction.
A month later, FTX itself went bankrupt, as traders pulled back from the platform within three days, and its chief executive Bankman-Fried had to step down.
Last month, a US federal judge temporarily paused the $1.3bn proposed transaction by Binance.US to allow the US federal officials to challenge its legality.