It’s a new twist in the Voyager Digital affair after Binance.US announced it was backtracking on the agreement to buy back customers’ assets. Will aggrieved investors ever get their cryptocurrencies back
Binance.US ends deal with Voyager Digital
While Voyager Digital was thought to be definitively closed due to the acquisition of its assets by Binance.US, the cryptocurrency exchange platform has just announced a new turn of events.
Last night, a Twitter thread from the bankrupt exchange reported that the US branch of Binance had sent them a letter simply terminating the agreement:
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
The origins of the affair can be traced back to a default by Three Arrows Capital (3AC), which put Voyager Digital in difficulty. As a result, the platform suspended withdrawals in July 2022, just before filing for Chapter 11 bankruptcy protection in the United States.
From then on, Voyager’s customers, whose assets were frozen, were subjected to a long rollercoaster ride. While FTX was expected to rescue the platform after lengthy negotiations, the deal was nipped in the bud after Sam Bankman-Fried’s (SBF) financial crimes ultimately caused the collapse of his empire.
Direct redistribution to customers
Despite numerous regulatory hurdles, most notably with the Securities and Exchange Commission (SEC), Binance.US’s asset purchase agreement appeared to be on track. As a result, Voyager Digital has described the plan, which was intended to allow assets to be transferred with a simple ‘toggle button’ for customers, as a ‘disappointing development’.
The exchange also said that under the terms of the agreement, Binance.US was obliged to delete all data relating to its customers’ information.
Despite this, investors who placed their trust in Voyager Digital should still find a positive outcome to this complex affair, as their assets should now be returned directly to them:
“In accordance with the terms of the agreement, Binance.US is required to delete all data relating to its customers’ information.
In line with the plan, we will now move quickly to return value to customers through direct distributions. We will provide more information on the next steps and actions customers need to take in the coming days. “
So, customers will still have to wait to get their cryptocurrencies back, even if it seems that this time, it is the scenario of a pure and simple restitution that should be favoured after all these setbacks.
