Texas Securities Board Opposes Binance.US and Voyager Digital Deal

Texas Regulators Challenge Binance.US Deal

The Texas State Securities Board and the Department of Banking are raising objections to a proposed acquisition deal between Binance.US and the bankrupt crypto lender Voyager Digital. These regulatory bodies have expressed concerns about the terms of service and the restructuring plan as stated in a recent court filing.

Inadequate Disclosures Highlighted

A significant issue identified by the Texas regulators is the inadequate disclosures presented in the restructuring plan. It appears that unsecured creditors are not fully informed about their potential recovery percentages. Under the current plan, they may only receive a recovery of 24%-26%, compared to the 51% they could potentially receive under Chapter 7 bankruptcy proceedings.

Binance.US's Acquisition Agreement

In December, Binance.US disclosed an agreement to acquire Voyager Digital's assets for $1.022 billion. This acquisition was intended to provide a more favorable outcome for creditors and customers of Voyager. However, the objections from Texas regulators suggest that the deal may not be as beneficial as initially portrayed.

Potential Impact on Creditors

The discrepancy between the proposed recovery percentages and those under Chapter 7 highlights a critical concern for creditors. The reduced recovery rate could significantly impact unsecured creditors, making the current plan less appealing.

Importance of Transparency

The objections from the Texas regulators emphasize the need for transparency and adequate disclosure in financial deals, particularly within the volatile crypto industry. Ensuring all parties are well-informed is crucial to maintaining trust and integrity in financial transactions.

In conclusion, the objection from Texas regulators to the Binance.US and Voyager Digital deal underscores the importance of clear and comprehensive disclosures in financial agreements, especially in the rapidly evolving cryptocurrency sector.