Binance.US Abandons $1.3B Assets Deal With Voyager Digital Due To 'Hostile And Uncertain Regulatory Climate'

Binance.US, the American arm of one of the world's largest crypto exchange platforms, has called off its $1.3 billion asset purchase deal with now-bankrupt crypto brokerage company Voyager Digital due to a "hostile and uncertain regulatory climate."

This comes after Binance.US faced opposition from various financial regulators in the United States.

"Today we received a letter from Binance.US terminating the asset purchase agreement," Voyager said in a tweet Tuesday, adding that "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."

In a similar announcement released Tuesday, Binance.US said the decision to call off the deal with Voyager Digital was a difficult one to make since its offer intended to help the now-bankrupt crypto brokerage firm's customers.

Moreover, it seemingly implied that it was forced to do so when the U.S. introduced an "unpredictable operating environment" that was affecting the business community in the country.

"Binance.US has made the difficult decision to exercise its right to terminate the asset purchase agreement with Voyager," the crypto exchange platform said in a tweet.

"While our hope throughout this process was to help Voyager's customers access their crypto in kind, the hostile and uncertain regulatory climate in the United States has introduced an unpredictable operating environment impacting the entire American business community," it added. "We are focused on creating a safe platform where our customers can participate in the digital asset economy."

For months, Binance.US tried to convince regulators to approve the $1.3 billion asset purchase agreement with Voyager Digital.

The firm even faced multiple roadblocks along the way, including opposition from the U.S. Securities and Exchange Commission, the Commission on Foreign Investment in the U.S. and Cfius, an interagency team that screens proposed acquisitions.

The unsuccessful deal between Binance.US and Voyager Digital is another major blow to the cryptocurrency industry, which has been trying to establish itself in the country for years.

Binance.US walking away from the deal is also a major burden for the now-bankrupt crypto brokerage firm, which has been looking for ways to raise funds to repay its creditors since it filed for bankruptcy last year.

Voyager Digital initially planned on selling its assets to FTX, the crypto empire co-founded by the embattled crypto kingpin Sam Bankman-Fried. However, the deal fell through when the latter imploded in November 2022.