Binance.US backs out of buying Voyager, citing 'hostile' regulatory climate

By Frances Yue

Crypto exchange Binance.US on Tuesday terminated an agreement to purchase bankrupt crypto brokerage Voyager Digital Holdings in a $1.3 billion deal.

"While our hope throughout this process was to help Voyager's customers access their crypto in kind, the hostile and uncertain regulatory climate in the United States has introduced an unpredictable operating environment impacting the entire American business community," according to a tweet by Binance U.S. Tuesday.

A federal judge last month reportedly temporarily stopped Voyager from completing the proposed sale to Binance.US., according to Reuters.

U.S. regulators have been increasing their oversight of the crypto industry, after several major companies, including Voyager and exchange FTX, went bankrupt last year, resulting in billions of dollars in investors' losses.

Voyager said Tuesday via Twitter that it will now "move swiftly to return value to customers via direct distributions."

Representatives at Voyager didn't respond to requests seeking comment.

Bitcoin is trading at around $27,588 on Tuesday, up over 65% year-to-date, while still down 60% from its all-time high in 2021, according to CoinDesk data.

-Frances Yue

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04-25-23 1557ET

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