The Texas State Securities Board and Department of Banking have objected to a proposed deal between Binance.US and bankrupt crypto lender Voyager Digital, according to court filings from February 24.
According to the document, the terms of service and the restructuring plan of Binance.US contain several “inadequate” disclosures, including not informing the unsecured creditors sufficiently that under the plan they can only get a recovery of 24%-26%, instead of the same 51% . will receive in Chapter 7. Binance.US announced in December an agreement to buy Voyage assets for $1.022 billion.
The filing also notes that the company’s disclosure statement failed to provide information that account holders must allow the transfer of “personally sensitive information to parties anywhere in the world as requested by Binance.US, and then strip the account holder of any legal recourse.” anything can happen.” As explained in the disclaimer:
“So, according to these ToUs, customer information can be transferred to almost any company or person that Binance.us wants, and, if there is a problem in the customer’s access or use of the Binance.us Service, the customer does not have the right to challenge the problem. “
Further, the document states that the plan “unfairly discriminates against Texas consumers.” As Texas is not a jurisdiction supported by Binance.US, customers in that state will have digital assets held by Voyager for six months after the agreement, during which time Binance.US will apply for a license in that state.
But according to the argument:
“It is almost impossible for Binance.us to be licensed by the Texas SSB and DOB for six months and, thus, to hold Texas consumer coins for six months without earning anything.”
The filing comes just days after the Securities and Exchange Commission (SEC) filed a filing with a bankruptcy court in New York alleging securities law violations in several aspects of the restructuring plan. Binance.US and related debt are under investigation by the SEC for possible anti-fraud, registration, and other violations of federal securities laws.
In the document, the SEC expressed concerns about the security of assets acquired through the proposed acquisition, among other issues.
Binance.US did not immediately respond to Cointelegraph’s request for comment.