Regulatory Climate Influences Termination Decision
Binance.US cited the "hostile and uncertain regulatory climate in the United States" as the reason behind the termination. The unpredictable operating environment has impacted the entire American business community.
Deal Initially Approved Despite Legal Concerns
Despite concerns about the contract potentially pardoning breaches of tax or securities law, the $1 billion deal was allowed to proceed by the U.S. government in an April 20 filing. Most Voyager creditors and bankruptcy judge Michael Wiles approved the deal.
Creditors' Committee Investigates Potential Claims
A committee representing Voyager creditors in bankruptcy proceedings expressed disappointment with the news and stated that it was "investigating potential claims" against Binance U.S.
VGX Token Value Drops Amid Deal Termination
The value of Voyager's VGX token dropped by approximately 11%, trading around $0.3144 on Tuesday, following concerns that the deal termination could be linked to an upcoming settlement with the Commodity Futures Trading Commission (CFTC).
Deal Collapse May Cost Estate and Creditors
Voyager's attorneys warned that the deal falling apart could cost the estate and its over 1 million creditors an extra $100 million. Binance.US Chief Executive Officer Changpeng Zhao responded to speculation about the deal's collapse with an emoji of a shrugging figure.