Voyager was taken by surprise when Binance.US canceled a $1 billion deal to buy its assets on Tuesday, as the exchange was still showing interest as recently as last week, Voyager's attorneys told a New York courtroom on Wednesday.

Binance.US had made an offer for the bankrupt crypto lender in December, but pulled out on Tuesday, citing an "uncertain regulatory climate."

“The debtors have been in constant contact and communication with Binance.US and as lately as this past Friday, Binance.US had expressed the desire to close the transaction as soon as possible,” Christine Okike of law firm Kirkland & Ellis, representing Voyager, told a bankruptcy court in the Southern District of New York, adding that “the debtors reserve all rights against Binance.US for breach" of the deal.

Given the collapse of the Binance.US deal, likely recoveries for Voyager creditors are in the range 40-65%, Okike said, depending on whether Voyager wins a parallel suit with bankrupt crypto exchange FTX, and how much recovery FTX itself offers its creditors.

(By Jack Schickler)