According to a statement released by the insolvent crypto lender Voyager Digital, the U.S. arm of Binance has canceled its agreement to purchase Voyager’s assets. According to the reorganization plan that was accepted by the court, Voyager Digital will instead provide clients the ability to choose between receiving cash or cryptocurrency in the form of a “toggle option” on the Voyager platform.
A U.S. bankruptcy judge gave the go-ahead for the sale to Binance.US just one month ago and according to the previous plan, customers’ funds would have been recovered to the extent of 73%. However, this amount could have been reduced to 48% in the event that claims from the defunct cryptocurrency exchange FTX and its subsidiary Alameda Research were successful. There was a resounding 97% yes vote among the 6% of creditors who voted on the proposed Voyager plan.
The scheme, which would have allowed Voyager customers to switch over to Binance.US, was met with intense governmental investigation, leading the Securities and Exchange Commission to assert that Binance.US was operating an unregistered securities exchange in the United States. This may be one plausible reason why the US-based crypto exchange notified Voyager of its termination earlier today.
Read More: Binance Hits Snag As New China-Link Emerges; Are US Customers In Trouble?
In a tweet, the committee of unsecured creditors expressed extreme displeasure with the decision and indicated that it was looking into the possibility of bringing legal action against Binance exchange. In the meantime, the Committee and Voyager are focused on quickly utilizing the “toggle option that is outlined in the plan to move forward immediately with a self-liquidation”.
In light of this news, the exchange’s native cryptocurrency BNB, witnessed a drop of roughly 0.22% in the past one hour. As things currently stand, the price of BNB is exchanging hands at $329.46 and boasts a market cap of roughly $52 billion.
Also Read: Cathie Wood & 21Shares Team Up To Unveil New Bitcoin ETF On Hopes Of SEC Approval
Zcash prices crashed over 40% today following a stunning revelation by developers. A severe vulnerability…
Bitcoin price has continued bleeding, recording lows near $59,000. It marks BTC's lowest level since…
Bitcoin advocate and Strategy Executive Chairman Michael Saylor has responded to Jim Cramer blaming him…
Financial giant BNP Paribas has predicted three Fed rate hikes as the U.S. labor market…
The U.S. House Ways and Means Committee has released several crypto tax discussion drafts as…
Grayscale Investments has submitted an application to the U.S. Securities and Exchange Commission (SEC) to…