It’s a new twist in the Voyager Digital case after Binance.US announced it was backing out of the deal to buy back customers’ assets. Will aggrieved investors ever get their cryptocurrencies back
Binance.US ends deal with Voyager Digital
While it was thought that Voyager Digital’s deal with Binance.US to buy its assets was definitively closed, the cryptocurrency exchange platform has just announced a new turn of events.
And for good reason, it was communicated last night in a Twitter thread of the bankrupt exchange that the US branch of Binance had sent them a letter to simply terminate the deal:
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 case can be traced back to a default by Three Arrows Capital (3AC), which put Voyager Digital in trouble. As a result, the platform suspended withdrawals in July 2022, just before filing for Chapter 11 bankruptcy protection in the US.
From then on, Voyager’s customers, whose assets were frozen, endured a long rollercoaster ride. While FTX was expected to come to the platform’s rescue after lengthy negotiations, the deal reached was nipped in the bud after Sam Bankman-Fried’s (SBF) financial crimes eventually caused the collapse of his empire.
A direct redistribution to customers
Despite numerous regulatory hurdles, primarily with the Securities and Exchange Commission (SEC), the Binance.US asset purchase agreement appeared to be on track. As a result, Voyager Digital cites a “disappointing development” in the plan, which was to allow a transfer of assets with a simple “toggle button” for customers.
On the other hand, the exchange said that under the terms of the agreement, Binance.US was required to delete all data relating to its customers’ information.
Nevertheless, investors who had placed their trust in Voyager Digital should find a positive outcome to this twisted affair, as their assets should be returned directly to them from now on:
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 should take in the coming days. “
So, customers will still have to wait to get their cryptocurrencies back, although it seems that this time, the scenario of an outright restitution should be preferred after all these setbacks.
