Binance Pulls Out Of Deal To Acquire Voyager Digital Assets, Here's What's Next

The aftershock of the bankruptcy of cryptocurrency platform FTX isn’t done affecting Voyager Digital Ord Shs (OTC: VYGVQ).

What Happened: The beleaguered crypto brokerage took another blow on Tuesday, saying on Twitter that Binance has decided to pull out of its agreement to acquire the assets and customers of Voyager Digital. The deal, which had been approved by a Bankruptcy Judge in March, was facing additional hurdles before it could be finalized.

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 termination of the asset purchase agreement means that Voyager will now move forward with its "toggle option" to directly distribute cash and crypto to its customers via the Voyager platform. While this is a setback for Voyager, it may provide some relief for those who had been eagerly waiting for the completion of the Binance acquisition.

The decision to terminate the deal came amid concerns raised by the SEC about Binance.US's regulatory compliance. However, Bankruptcy Judge Michael Wiles overruled the objection, Reuters said, stating that the agency had failed to present any evidence.

Read also: Coinbase Demands Action from SEC: The Thrilling Legal Clash In The Crypto World

Voyager's financial advisors requested up to four weeks to review new questions about Binance.US's commitment to the acquisition, as well as the security of Binance.US customer deposits.

The deal also faced scrutiny from the Committee on Foreign Investment in the United States (CFIUS), which is investigating national security risks associated with foreign investment in Voyager.

While the termination of the deal may not have affected the intraday prices of major cryptos like Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), it serves as a reminder of the challenges and uncertainties that continue to face the sector.

Read next: Coinbase CEO 'Absolutely' Prepared For Long Legal Battle With SEC: 'We Never Seek Litigation…They Have Initiated It'

Disclosure: Benzinga CEO Jason Raznick is a member of the unsecured creditor committee in the Voyager Digital bankruptcy case.