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Home Cryptocurrency Voyager Legal Team Left Shell-Shocked As Binance.US Walks
Away From $1 Billion...
 * Cryptocurrency
 * News


VOYAGER LEGAL TEAM LEFT SHELL-SHOCKED AS BINANCE.US WALKS AWAY FROM $1 BILLION
ACQUISITION DEAL

By
Brenda Ngari
-
April 27, 2023
642
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Advertisement

   


Lawyers of Voyager Digital were taken aback when Binance.US called off its deal
to acquire the assets of the insolvent crypto lender on Tuesday. The deal had
been approved by a judge last week in the bankruptcy court.

Voyager will now have to distribute cash and crypto to customers using its
platform following Binance.US’s about-face.


“SURPRISED”

Voyager attorneys were “surprised” Binance.US terminated its asset buy deal.

In a bankruptcy court in the Southern District Court of New York on Wednesday,
the lawyers posited that the exchange was still displaying interest as recently
as last week.

“The debtors have been in constant contact and communication with Binance.US,
and as lately as this past Friday, Binance.US had expressed the desire to close
the transaction as soon as possible,” Christine Okike of law firm Kirkland &
Ellis, representing Voyager, stated.

Advertisement

   


WHY BINANCE.US NUKED VOYAGER DEAL

Binance backed out of its deal to acquire Voyager’s assets due to what it
described as a “hostile and uncertain regulatory climate in the United States.”
Following the termination of the deal, recoveries for Voyager’s creditors will
likely be in the range of 40% to 65%, Okike noted. This depends on whether
Voyager wins a parallel suit involving now-defunct digital asset exchange FTX
and how much recovery FTX offers its creditors.

Voyager was among multiple crypto companies to go under last year after the
abrupt fall of Terra’s LUNA governance token and the UST algorithmic stablecoin.
The crypto broker declared bankruptcy on July 5.

A number of regulators sought to block the deal, which would have allowed
Voyager customers to become Binance.US customers. That included the Securities
and Exchange Commission (SEC), the Federal Trade Commission, the Texas State
Securities Board, and the Texas Department of Banking.

Binance.US’s withdrawal comes after its international affiliate found itself in
the cross-hairs of regulators in the United States. The Commodity Futures
Trading Commission (CFTC) launched a lawsuit against Binance last month,
accusing the world’s largest crypto exchange by trading volume of violating
derivatives rules. In fact, some speculated that Binance.US’s decision to pull
out of the Voyager agreement could be part of the conditions of a forthcoming
settlement with the CFTC.

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Brenda Ngari
Brenda is a crypto and Blockchain enthusiast and has been crafting articles for
at least a year. She has a solid background in Economics and Finance. When she
is not writing crypto stories, she’s spending quality time with her family and
friends or trying out different cuisines in the kitchen. Contact: Brenda.Ngari
[at] zycrypto.com



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