According to a court document filed on February 24th, the Texas State Securities Board and the Department of Banking are opposing a proposed agreement between Binance.US and insolvent crypto lender Voyager Digital.
The terms of service and restructuring plan for Binance.US, according to the document, contain a number of “inadequate” disclosures, including failing to adequately inform unsecured creditors that, under the plan, instead of the 51% recovery they would obtain under Chapter 7, they might only get 24%–26% of it.
Agreement between Voyager-Binance.US
A deal to purchase the assets of Voyager for $1.022 billion was made public by Binance.US in December.
The petition claims that the company’s disclosure statement fails to inform account holders that they must send “personally sensitive information to any entity in any region of the world” in order to use Binance.US, depriving them of any legal recourse in the event that any issues arise.
- Texas and the Department of Banking are opposing an agreement between Binance.US and Voyager Digital.
- Texas’ Customers would have its digital assets held by Voyager for six months following the deal.
Additionally, the petition claims that the scheme “unfairly discriminates against Texas consumers.” Customers in Texas would have their digital assets held by Voyager for six months following the deal because Texas is not a supported jurisdiction by Binance.US. During this time, Binance.US would seek a license in the state.
A few days earlier, the Securities and Exchange Commission (SEC) submitted a paper to a New York bankruptcy court saying that specific aspects of the reorganization plan broke securities law.
The SEC is investigating potential breaches of federal securities laws concerning the US and associated debtors, including possible anti-fraud, registration, and other offenses.
The security of the assets that would be acquired through the proposed acquisition was one of the issues the SEC brought up in the document.