Binance US has pulled the plug on a $1 billion deal to acquire the assets of bankrupt crypto lender Voyager Digital.
In a tweet, Voyager says it has received a letter from Binance US "terminating the asset purchase agreement".
Binance won the bidding for Voyager's assets in December in a move that was supposed to set a "clear path forward for Voyager customer funds to be unlocked as soon as possible".
The firm now says it will now "move swiftly to return value to customers via direct distributions" of cash and crypto.
In its own tweet, Binance US blames its decision on the "hostile and uncertain regulatory climate in the United States".
Voyager filed for Chapter 11 bankruptcy protection in July, listing assets of between $1 billion and $10 billion and liabilities in the same range.
The company suffered a blow when Three Arrows Capital went a week earlier, defaulting on a loan of 15,250 BTC and $350 million USDC.
In September, FTX won the auction for Voyager's assets but that agreement fell apart when Sam Bankman-Fried's company later went bust.