Binance Cancels Purchase of Bankrupt Company Assets Voyager Digital

Binance Cancels Purchase of Bankrupt Company Assets Voyager Digital

After facing delays, Binance finally chose to cancel the acquisition of assets from bankrupt company Voyager Digital.

Previously, the exchange led by Changpeng Zhao was willing to buy assets from the company worth US$1 billion, but was constrained by US Government intervention.

Voyager Digital went bankrupt due to an economic crisis due to a bear market that hit throughout 2022.

Binance Cancels Acquisition of Voyager Digital Assets 

According to a Watcher News report , the announcement of terminating interest in the acquisition of Binance came after the Federal Government passed the acquisition deal. Initially, the acquisition will be carried out by the United States branch of Binance, Binance US.

Voyager Digital also said that they had received a letter terminating the acquisition agreement.

Initially, Binance US will spend around US$20 million in payments to Voyager Digital customers.

The deal was previously terminated by the US Government due to concerns that the law had been violated.

Another option is the Chapter 11 Plan, which allows direct distribution of cash and crypto to customers via the Voyager Digital platform.

In response to the cancellation, Voyager said they were disappointed, but maintained their Chapter 11 Plan.

The bankrupt company's team also said they would move more quickly to return their assets through the direct distribution method.

“Binance US has made the difficult decision to exercise its right to terminate its asset purchase agreement with Voyager… While our hope throughout this process was to help Voyager customers access their crypto in kind, the hostile and uncertain regulatory climate in the US has introduced an operating environment unpredictable events that impact the entire American business community,” said Binance US.

Binance US has made the difficult decision to cancel the acquisition, while explaining that they will continue to develop a more secure platform for their users.

On the other hand, the asset holdings in Voyager Digital are very attractive, where the bankrupt company holds around 3.1 trillion Shiba Inu (SHIB) tokens, worth US$32 million. Voyager's largest holdings are in the form of USDC and Ether (ETH).