The Texas State Securities Board and Department of Banking oppose a proposed deal between Binance.US and bankrupt crypto lender Voyager Digital, shows a February 24 court filing.
According to the document, Binance.US' terms of service and restructuring plan contain a number of "inadequate" disclosures, including the failure to adequately inform unsecured creditors that, under the plan, they can only obtain a recovery of 24% to 26%, instead of the 51% they get. would receive under Chapter 7. Binance.US revealed in December an agreement to purchase Voyage's assets for $1.022 billion.
The filing also notes that the company's disclosure statement fails to advise that account holders must permit the transfer of "sensitive personal information to any party anywhere in the world as required by Binance.US, and then strips account holders of accounts of any legal". recourse for any issues that may arise.โ As explained in the objection:
"Thus, under these Terms of Use, customer information may be transferred to almost any company or person that Binance.us chooses and, if any problem arises in Binance.us's access to or use of the Binance.us Services of the clients, the clients have absolutely no right to challenge the matter".
In addition, the document claims that the plan "unfairly discriminates against Texas consumers." Since Texas is not a supported jurisdiction for Binance.US, clients in the state would have their digital assets held by Voyager for six months after the agreement, during which time Binance.US would seek the license in the state.
However, according to the objection:
โIt will be almost impossible for Binance.us to get the Texas SSB and DOB license within six months and as such, holding Texas consumer currency for six months accomplishes nothing.โ
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 some aspects of the restructuring plan. 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 document, the SEC expressed concerns about the safety of the assets acquired through the proposed acquisition, among other issues.
Binance.US did not immediately respond to Cointelegraph's request for comment.
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