Bankrupt digital asset platform Voyager Digital has received a Dear John, or perhaps a Dear Voyager letter from Binance.US.
In a series of Tweets, Voyager revealed that Binance.US has announced a separation from its previously announced agreement.
Last January, bankruptcy courts approved the sale of Voyager Digital to Binance.US in a deal said to be worth around $1 billion. Voyager had filed for bankruptcy protection last July following a loan gone bad situation that, unfortunately, was provided to crypto hedge fund Three Arrows Capital (3AC), another bankrupt firm that was obliterated due to its risky investments. 3AC defaulted on a $650 million loan to Voyager leaving the firm decimated.
Voyager Tweeted:
“Today we received a letter from Binance.US 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 said it was now switching to Plan B and will work on distributing remaining value to customers.
The Court document revealing the termination states:
“…at this time the Debtors intend to exercise the toggle to the Liquidation Transaction provided under the Plan whereby the Debtors will return crypto and cash directly to creditors via the Voyager platform. The Debtors will provide further information regarding the Liquidation Transaction and the timing thereof, including filing the Liquidation Procedures as set forth in Article IV.D.1 of the Plan, in the near term.”