That's called a disturbing deal break when the government tries to take matters into its hands. If anyone reading this post has been following the news about what's happening in America then they would understand what this deal break-up is all about.
In a short para:
The American government is trying to enforce laws on crypto and mostly they look like harsh ones where any crypto institute, digital exchanger, holder, or even crypto bank for that matter can not survive properly. SEC and FED are the biggest rivals of cryptocurrency and they are going rogue about it. SEC's decision on regulating numerous tokens as security and FED's decision of going stringent on Binance.US made Binance change the way they are operating in the USA. Mostly they are going to leave the US and shift their offices elsewhere.
However, this has now initiated a serious chain reaction amongst other investors. Such as Voyager and Binance.US had a $1 billion dollar deal and their investors are actually ok with the break up because they think the US is not a viable land where crypto business can be done. It's far better to move and break this deal apart.
Though Voyager is jeopardized due to this deal, Binance said' it's not their fault.
The US is getting hard day by day, it could collapse the economic circle of exchangers and crypto for sure. Today one such deal is getting collapsed, who knows what would happen in the future?
Bankrupt crypto lender Voyager Digital said it received a letter from Binance.US, terminating the asset purchase deal.
"Today we received a letter from Binance.US terminating the asset purchase agreement," Voyager said in a tweet on Tuesday. "While this development is disappointing, our Chapter 11 plan allows for direct distribution of cash and crypto to customers via the Voyager platform," the tweet added.
In a tweet, Binance.US attributed the termination to the "hostile and uncertain regulatory climate in the United States" that has "introduced an unpredictable operating environment impacting the entire American business community."
A substantive part of the $1 billion deal was allowed to proceed by the U.S. government in an April 20 filing, despite concerns the fine print of the contract would pardon breaches of tax or securities law.
The deal had been approved by the vast majority of Voyager creditors who voted, and by bankruptcy judge Michael Wiles. A committee representing those creditors in bankruptcy proceedings tweeted that it was "incredibly disappointed" with the news and was "investigating potential claims" against Binance.US.
Lawyers for the U.S. government, including the Securities and Exchange Commission, had sought to block the deal, arguing that some of the assets involved in the transaction, including potentially Voyager's VGX token, could constitute unregistered securities. VGX fell about 11%, trading around $0.3144 on Tuesday.
Binance.US' offer, originally made in December, allowed it to back out if the deal wasn't consummated within four months. In a recent legal filing, attorneys for Voyager warned that the deal falling apart could cost the estate, and its over 1 million creditors, an extra $100 million.
Faced with Twitter speculation that abandonment of the deal was linked to an upcoming settlement with the Commodity Futures Trading Commission, which has sued parent exchange Binance over selling unregistered crypto derivative products, Chief Executive Officer Changpeng Zhao responded with an emoji of a shrugging figure.
Voyager Digital Says Binance.US Sent Letter Terminating $1B Asset Buy Deal
