Voyager Digital’s surprise was heightened when Binary.US cancelled a $1 billion agreement to purchase its assets. Voyager Digital’s lawyers said that the exchange still showed interest in its assets as recently as last weekend.

Binance.US made an offer to buy the bankrupt crypto-lender in December, but withdrew the offer on Tuesday citing the “uncertain regulatory environment” in the U.S.

Christine Okike of Kirkland & Ellis representing Voyager told a bankruptcy judge in the Southern District Court of New York that the debtors had been in constant communication and contact with Binance.US. As recently as last Friday, Binance.US expressed a desire to complete the transaction as quickly as possible. She added that the debtors reserved all rights against Binance.US if the deal was breached.

Okike stated that given the collapse of Binance.US, the likely recovery for Voyager’s creditors is between 40% and 65%. This depends on whether Voyager prevails in a parallel suit involving the bankrupt crypto exchange FTX and how much FTX recovers for its creditors.

Okike said Voyager will also try to return their original cryptocurrency to creditors, despite rumors that it would pay cash instead.

Okike stated that “the debtors intend to make ‘in-kind’ distributions, subject to regulatory restrictions and the platform functionality.” However, he warned that a changing legal position by U.S. regulators may complicate Voyager’s ability to do this.

Okike explained that the SEC had not taken a position on [Voyager’s token] VGX, but they made some allegations which could make it impossible for debtors to sell VGX in the market.

Okike stated that the regulatory uncertainty which would force payments to be made by cash, was applied to tokens whose total value is likely to be $1.6 million in an estate worth around $1 billion.

Voyager declared bankruptcy in July. A deal to purchase its assets by FTX fell through in November after FTX collapsed. Binance.US was delayed in part because the SEC protested that the fine print offered exemption for violations of tax or securities laws.

Read more: Voyager Digital Says Binance.US Sent Letter Terminating $1B Asset Buy Deal

Nikhilesh De.