Illustration: Annelise Capossela/Axios
The proposed deal between bankrupt crypto lender Voyager Digital and Binance's U.S. unit is no more.
Why it matters: Even with bitcoin and ether bouncing back from last year's doldrums, regulatory uncertainty could put deals on ice, as some of the cryptocurrency's institutions struggle to find their footing.
Driving the news: Voyager on Tuesday afternoon said that it had received a letter "terminating" their previous purchase agreement.
- In a statement, Binance U.S. explained that "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."
State of play: The dissolution of the deal follows a months-long saga of U.S. financial regulators opposing it, with both the Securities and Exchange Commission as well as the New York State Department of Financial Services questioning the acquisition.
The intrigue: A New York court denied the government's request to halt the deal and last week, the bulk of the deal was poised to get the go-ahead.
Flashback: Reports of Binance U.S.'s interest in buying Voyager's assets started after the dramatic collapse of crypto exchange FTX.
What they're saying: "Consistent with the plan, we will now move swiftly to return value to customers via direct distributions," Voyager said in a tweet thread.