• Texas’ State Securities Board and the Department of Banking are objecting to a proposed deal between Binance.US and bankrupted crypto lender Voyager Digital.
• The objection claims that Binance.US’s terms of service and restructuring plan contain inadequate disclosures, such as not informing unsecured creditors adequately that they may only get 24%-26% recovery rather than the 51% they would receive under Chapter 7.
• Furthermore, the document claims that the plan “unfairly discriminates against Texas consumers.”
Texas Objects to Voyager-Binance.US Deal
Texas’ State Securities Board and the Department of Banking have filed an objection to a proposed deal between Binance.US and bankrupted crypto lender Voyager Digital. The filing outlines several specific issues with Binance.US’s terms of service and restructuring plan that are seen as inadequate or unfair towards Texas creditors.
The filing states that Binance.US’s terms of service and restructuring plan contain several “inadequate” disclosures, including not informing unsecured creditors adequately that under the plan, they may only get 24%-26% recovery rather than the 51% they would receive under Chapter 7 bankruptcy proceedings. Additionally, customers are required to allow the transfer of personally sensitive information to any party in any part of the world as required by Binance. US without providing legal recourse for any issues that arise from it.
Discrimination Against Texas Consumers
The filing also notes that customers in Texas are discriminated against because their digital assets will be held by Voyager for six months after agreement while Binance seeks licensing in their state even though it is not currently supported by them.
Effects on Creditors
The objections raised in this filing will have serious effects on creditors if accepted by the court due to changes in their expected recovery rate along with lack of legal protection for their personal information when transferred abroad as required by Binance US policies..
Overall, this court filing shows strong objections from both Texas’s State Security board and its Department Of Banking towards a proposed deal between Binance US and Voyager Digital over various inadequacies disclosed within its restructuring plans which unfairly discriminates against Texan citizens if accepted by courts