Cryptocurrency trading platform Voyager Digital Ltd. announced on Friday that it received a letter from Binance.US terminating their asset purchase agreement.
Voyager stated that while the news is disappointing, their Chapter 11 plan enables direct distribution of cash and crypto to customers through the Voyager platform.
The deal between Voyager and Binance.US was initially announced in February. The agreement would have seen Voyager acquiring Binance.US, a US-based cryptocurrency exchange, for an undisclosed amount, making it the largest acquisition in Voyager’s history.
According to Voyager’s CEO, Steve Ehrlich, the acquisition was expected to significantly increase the platform’s user base, enhance its trading tools, and provide access to Binance.US’s extensive liquidity.
However, Binance.US’s decision to terminate the agreement came as a surprise to Voyager.
Despite the setback, Voyager’s Chapter 11 plan, approved by a US Bankruptcy Court earlier this year, allows for the direct distribution of cash and crypto to customers.
The plan includes a toggle option that enables customers to choose whether they prefer to receive their funds in cash or crypto.
In a statement, Voyager stated that it will now move swiftly to return value to customers via direct distributions, and more information on next steps and any actions customers need to take will be provided in the coming days.
This news comes after a recent announcement that Voyager is facing a class-action lawsuit filed by investors who allege that the company misled them by making false statements and failing to disclose negative information about its business operations.
The lawsuit alleges that Voyager violated securities laws by making false or misleading statements about its business model, financial condition, and prospects.
Despite these challenges, Voyager remains committed to providing its customers with a seamless trading experience. The platform has recently added several new features, including the ability to earn interest on crypto holdings and the integration of decentralized finance protocols.
