April 25, 2024

Binance.US Stopped Buying Voyager Due to Unfavorable Regulatory Environment

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Binance.US Stopped Buying Voyager Due to Unfavorable Regulatory Environment

American divisioncryptocurrency exchange Binance decided to abandon the deal to buy out the assets of the bankrupt crypto lending service Voyager Digital due to the regulatory situation.

Crypto lender Voyager Digital reported thatwill distribute the remaining cash and crypto assets among clients to reimburse part of the damage. In addition, the company’s lawyers are assessing the possibility of receiving a fine from Binance.US for terminating the deal.

“Today we received an email from Binance.US with notice of termination of the agreement to purchase our assets. This decision is disappointing, but we have the opportunity to distribute the remaining funds and assets to Voyager platform customers,” the company said in a statement.

Binance.US stressed that it wanted to help Voyager customers, but "the hostile and uncertain regulatory climate in the United States has created an unpredictable operating environment affecting the entire American business community."

It was expected that after the buyout of Binance.US assets of the crypto lender, users of the service will return about 73% of their funds. Although there are active complaints against the service from the collapsed FTX exchange and the affiliated company Alameda Research. If these claims are satisfied, only 48% of the funds will be returned to Voyager clients.

Previously, the New York District Court approved the sale of Voyager assets to the American division of the Binance exchange.