The Texas Securities Commission and the Department of Banks objected to a proposed transaction between Binance.US and bankrupt cryptocurrency lender Voyager Digital, according to a Feb. 24 court filing.
According to the filing, Binance.US’s terms of service and restructuring plan contain numerous “inadequate” disclosures, including failing to adequately inform unsecured creditors that they may only be able to recover 24%-26% of their recovery under the plan, rather than 51% % Pursuant to Chapter 7, Binance.US disclosed in December an agreement to acquire Voyager assets for $1.022 billion.
The filing also states that the company’s disclosure statement failed to inform account holders that they must allow “transfers of sensitive personal information to any party anywhere in the world as required by Binance.US, and then deprive account holders of any legal right to recourse.” any problems that might arise.” As explained in the dissenting opinion: “So, under these ToUs, customers’ information can be transferred to almost any company or person that Binance.us desires, and, if any issues arise in the customers’ access to or use of Binance.us’s Services, the customers have absolutely no right to challenge the issue.”
Additionally, the filing claims the program "unfairly discriminates against consumers in Texas." Since the state of Texas is not supported by Binance.US, the digital assets of customers in that state will be held by Voyager for six months after the agreement is signed, during which time Binance.US will seek a license in the state.
It comes just days after the U.S. Securities and Exchange Commission (SEC) filed a filing with a New York bankruptcy court alleging that certain aspects of the restructuring plan violated securities laws. Binance.US and related debtors are under investigation by the SEC for possible anti-fraud, registration and other violations of federal securities laws.
In the filing, the SEC expressed concerns about issues such as the safety of assets acquired through the proposed acquisition.
