Binance US has terminated a billion-dollar asset purchase agreement with digital asset broker Voyager Digital Ltd, according to a statement released by Voyager. The announcement was initially made via Twitter, where the company confirmed that it had received a letter from Binance US terminating the purchase agreement, which it described as “disappointing.” However, the broker also announced that its Chapter 11 plan would allow for the direct distribution of cash and crypto to its customers via the Voyager platform.
The deal was first disclosed towards the end of 2022 and faced several objections from the US Securities and Exchange Commission (SEC) but was eventually allowed to proceed after receiving court approval. Nevertheless, on 25th April 2023, Voyager revealed that the deal was no longer moving forward.
Voyager Digital had previously filed for bankruptcy in July 2022 citing “prolonged volatility and contagion in the crypto markets.” Before Binance stepped in to offer assistance, FTX was supposed to have helped Voyager, but its empire had collapsed. As the deal with Binance US has been terminated, Voyager’s Committee of Unsecured Creditors are reportedly investigating potential claims against the organization.
The termination of the deal with Binance US has prompted much speculation, with many wondering why the exchange had decided to pull out of the agreement. However, no official reason has been provided, leaving individuals within the crypto community to speculate about the potential reasons.
In conclusion, Binance US’s decision to terminate its billion-dollar asset purchase agreement with Voyager is a significant one for the digital asset broker. While the direct distribution of cash and crypto via the Voyager platform means that customers will not be affected by the deal’s termination, the loss of such a significant deal will undoubtedly have an impact on the company’s future financial performance.