Voyager Digital said Binance.US has sent the letter ending its $1 billion asset purchase agreement. The crypto lender noted that it will return money to customers through direct distribution. After the news, the price of Voyager Token (VGX) fell sharply.
Binance US terminates Voyager deal, VGX crashes!
Bankrupt crypto lender Voyager Digital said it received a letter from Binance.US terminating its asset purchase agreement. Voyager made the following statement in a tweet on Tuesday:
Today we received a letter from Binance US that the contract to purchase the assets has been terminated. While this development is disappointing, our Chapter 11 plan allows direct distribution of cash and cryptocurrencies to customers through the Voyager platform. We will act quickly to deliver assets to customers via direct distribution, in accordance with plan. We’ll provide more information in the coming days regarding next steps and actions customers need to take.
1/ Today we received a letter from https://t.co/yG7Airmib5 terminating the asset purchase agreement. 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.
— Voyager (@investvoyager) April 25, 2023
cryptocoin.com As you reported, after the news, Voyager Token (VGX) started to lose altitude. While the altcoin was moving in the green zone above $0.36, it fell vertically with the news. At press time, VXG was trading at $0.3158, down about 11% on a daily basis.
VXG daily price chart / Source: CoinMarketCapCryptocurrency exchange blames regulatory uncertainty in the US
Binance US made a statement on the subject with a tweet. The crypto exchange attributed the dissolution to the “hostile and uncertain regulatory climate in the United States” that “created an unpredictable operating environment affecting the entire American business community.” In this context, Binance made the following statement:
Binance US has made a difficult decision by terminating its acquisition agreement with Voyager. While our hope throughout the process has been to help Voyager customers’ crypto assets alike, the hostile and uncertain regulatory environment in the US has brought an unpredictable work environment that has impacted the entire American business community.
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
A significant portion of the $1 billion deal was allowed to progress in an April 20 filing by the U.S. government, despite concerns that fine printing of the contract would forgive tax or securities law violations.
Reports of Binance US and China connections resurfaced
Meanwhile, a report by Bloomberg has new allegations about the crypto exchange’s relationship with China-based developers. The report alleged that the exchange employs more than 100 workers in Shanghai for its engineering and product department. Also, the firm has reportedly been trying to relocate these employees to North America for about a year.
A spokesperson made a statement on the subject. In this context, he noted that the exchange has a global workforce of over 500 employees and contractors. The company representative also noted that the exchange stores all customer data on the Amazon Web Services platform in Virginia.
