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Unpredictable business environment
US cryptocurrency exchange Binance US announced on the 25th that it will cancel the acquisition of the assets of the bankrupt cryptocurrency investment platform Voyager Digital.
https://t.co/AZwoBOgsqS has made the difficult decision to exercise its right to terminate the asset purchase agreement with Voyager.
While our hope throughout this process was to help Voyager’s customers access their crypto in kind, the hostile and uncertain regulatory climate…
—Binance.US 
(@BinanceUS) April 25, 2023
Binance US criticized the “hostile and uncertain regulatory environment in the United States” as the reason for canceling the deal, citing “an unpredictable business environment” across the country’s business community.
After receiving notice of the termination of the asset purchase agreement from Binance US, Voyager said it was a “disappointing development,” but could switch to the option of returning assets directly to customers under Chapter 11 bankruptcy law. explained.
2/ Consistent with the plan, we will now move swiftly to return value to customers via direct distributions. We will provide more information on next steps and any actions customers need to take in the coming days.
— Voyager (@investvoyager) April 25, 2023
We will now act quickly to return value to our customers through direct distribution along this plan.
He added that the terms of the asset purchase agreement require Binance US to destroy all Voyager customer information it has received and to permanently close or delete accounts opened with customer information.
Chapter 11 of the U.S. Bankruptcy Code (Chapter 11)
A reconstruction-type bankruptcy legal system similar to the Civil Rehabilitation Law of Japan. The company will be restructured by reducing debts while continuing to operate. Debt collection will be suspended after the application, and the debtor will work on debt consolidation and formulate a reconstruction plan within 120 days in principle.
Cryptocurrency Glossary
The Long Road to Acquisition Approval
The 130 billion yen acquisition of Voyager by Binance US has had many twists and turns, most recently on the 19th, when the U.S. federal government reached an agreement to proceed with the acquisition with Voyager and a committee of creditors.
Voyager’s assets, which filed for bankruptcy in July last year, were awarded to FTX’s US division “FTX US” in September of the same year, but FTX subsequently went bankrupt. In December of the same year, Voyager selected Binance US as the buyer of its assets after another bid.
On March 7 this year, the U.S. Bankruptcy Court dismissed the Securities and Exchange Commission’s (SEC) takeover challenge and approved Voyager’s turnaround plan, which included an asset acquisition by Binance US.
Shortly thereafter, the U.S. Department of Justice and the U.S. Attorney’s Office for the Southern District of New York appealed the court’s ruling approving the Voyager acquisition. He protested that the terms of the deal effectively exempted him from violating tax and securities laws.
Voyager said delays in fulfilling contracts cost it more than 1.3 billion yen ($10 million) each month and prevented more than 1 million customers from accessing its assets. It also claimed that Voyager’s customers would suffer a loss of about 13 billion yen ($100 million) if the transaction with Binance US was not completed.
In the asset purchase agreement with Binance US, there was a condition that the contract could be terminated if the transaction was not completed within four months.
connection:U.S. DOJ Objects to Binance US Acquisition of Voyager
Binance sued by CFTC
The U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit against major global exchange Binance and its CEO Changpong Zhao (CZ) on March 27.
The CFTC complaint alleges that Binance intentionally provided derivatives trading services in the United States without registering with the CFTC. It also claims that it instructed users in the United States on how to circumvent compliance measures.
On Twitter, some speculated that Binance US’ exit from the Voyager acquisition was linked to the lawsuit and was part of a condition for Binance’s future settlement with the CFTC. CZ responded to the tweet with a shrug emoji.
Inb4 Binance pulling out of the Voyager deal is part of the conditions of an imminent settlement with the CFTC.
CFTC commissioner today: There is not an immediate path forward. That doesn’t mean there couldn’t be one and hopefully there will be one. https://t.co/jk90VcGsPa pic.twitter.com/2DOiIL2NjI
—Hsaka (@HsakaTrades) April 25, 2023
connection:CFTC sues Binance and CZ for violating U.S. law
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