Voyager, a major crypto lender, recently announced that it had received a letter from the American arm of crypto exchange Binance. The letter terminated their anticipated asset purchase agreement. According to the Tweet in which Voyager reported this development, the deal was worth around $1 billion. On April 20, the U.S. government approved the majority of the contract despite some concern from the public.
Voyager clarified that the termination of the agreement would not be detrimental to the company's customers. Instead, it is anticipating that any distributions of cash and cryptocurrency to the customers will be handled through a Chapter 11 plan. Through this plan, their customers will receive direct distribution of their assets through the Voyager platform.
Although the asset purchase agreement was cancelled, hopefully, investors will be pleased with the alternative plan that Voyager has put forward. As the Chapter 11 regulations were put in place to protect creditors, customers should be relatively reassured that their investments are safe, though it is still a difficult situation.
It remains to be seen what further actions will be taken due to Binance's decision to cancel the asset purchase agreement. The plan via Chapter 11 regulations, however, should help to reduce any unease that impacted customers may face, holding their investments safe until the ultimate resolution is reached.
James Wilson
- 2023-04-25
Binance Terminates Asset Purchase Agreement with Voyager
Recently, Voyager and U.S. arm of crypto exchange Binance had an asset purchase agreement worth around $1 billion. However, Binance recently sent a letter to Voyager to terminate the agreement. The company, however, has an alternative plan to protect the customers.
