Binance.US, a cryptocurrency exchange set up by Binance chief Changpeng Zhao to serve U.S. clients, has pulled out of a US$1.3 billion deal to buy bankrupt crypto lender Voyager Digital, the company said Tuesday, citing a lack of clear regulations in the country for the crypto industry.
See related article: Voyager-Binance.US’ $1 bln deal should be put on hold, says U.S. Department of Justice
Fast facts
- Binance.US tweeted on Tuesday that while its hope throughout this process was to help Voyager’s customers access their crypto, “the hostile and uncertain regulatory climate in the United States has introduced an unpredictable operating environment impacting the entire American business community.”
- Voyager, which filed for Chapter 11 bankruptcy in July, tweeted in response: “While this development is disappointing, our chapter 11 plan allows for direct distribution of cash and crypto to customers (a “toggle option”) via the Voyager platform.”
- A committee of Voyager creditors tweeted on Tuesday that they are “incredibly disappointed” by the move and are “investigating potential claims against Binance.US.”
- In March, Voyager received court approval to sell its assets and transfer its customers to Binance.US, overruling a January “limited objection” from the U.S. Securities and Exchange Commission, which said the agreement lacked details on Binance’s ability to close the deal.
- The deal also faced push back from the U.S. Department of Justice, which said in March that the agreement should be put on hold while legal objections are worked out.
See related article: Voyager gains court approval to sell assets to Binance U.S. in US$1.3 bln deal