May 28, 2023

Binance.US Stopped Buying Voyager Due to Unfavorable Regulatory Environment

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Binance.US Stopped Buying Voyager Due to Unfavorable Regulatory Environment

The American division of the cryptocurrency exchange Binance decided to abandon the deal to buy the assets of the bankrupt crypto lending service Voyager Digital due to the regulatory environment.

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

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

Binance.US emphasized that it wanted to help Voyager's customers, but "the hostile and uncertain regulatory climate in the US has created an unpredictable operating environment affecting the entire US 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 claims to the service from the collapsed FTX exchange and the affiliated company Alameda Research. If these claims are satisfied, then only 48% of the funds will be returned to Voyager customers.

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