The US state Securities body raised questions over BinanceUS’ terms & disclosures about its Voyager Digital acquisition plan.
BinaceUS is an independent subsidiary of Binance Crypto exchange. Since late 2022, BinanceUS is in talks with the bankrupt crypto lender company Voyager Digital, so that BinanceUS can acquire Voyager & revive the platform’ services in favour of Voyager creditors. Last week, Voyager bankruptcy lawyers confirmed that 97% of Voyager creditors agreed with the BinanceUS-Voyager deal and also confirmed that the deal will complete by early March of this year if any other party will not show any objection.
In the latest, a flling came to light, which is opposing the BinanceUS-Voyager deal. This filing was submitted in court by the Texas State Securities Board and the Department of Banking on Feb 24.
According to Texas, Binance.US’s terms of service and restructuring plan include several “inadequate” disclosures, and not informing unsecured creditors adequately that under the plan, they may only get 24%-26% recovery. The filing also noted that Voyager creditors can easily get a 51% recovery of what they lost on the Voyager platform under Chapter 7.
In short, BinanceUS’ plans are not transparent & disclosures are showing that Voyager creditors will get on average 25% recovery over what they lost, which is absolutely a wrong decision for Voyager creditors.
Further Texas filing also noted that the BinanceUS-Voyager deal will not be favourable to the Texas-based former Voyager customers because BinanceUS is not registered with the Texas state regulatory bodies, so how will it be possible for this exchange to secure a licence within 6 months?
Filing noted:
“It will be almost impossible for Binance.us to be licensed by the Texas SSB and the DOB within six months and, as such, holding the Texas consumers’ coin for six months accomplishes nothing.”
Read also: Four Russians will go jail over crypto pyramid scheme Forsage
Texas State Securities Board files objection over BinanceUS-Voyager deal
https://bitcoinik.com/texas-state-securities-board-files-objection-over-binanceus-voyager-deal/feed/
https://bitcoinik.com/texas-state-securities-board-files-objection-over-binanceus-voyager-deal/feed/
