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Texas Regulators Oppose Binance.US Transaction with Voyager Digital Due to Insufficient Disclosures

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On February 27, according to a court document on February 24, the Texas Securities Commission and the banking department opposed the proposed transaction betwe…

Texas Regulators Oppose Binance.US Transaction with Voyager Digital Due to Insufficient Disclosures

On February 27, according to a court document on February 24, the Texas Securities Commission and the banking department opposed the proposed transaction between Binance.US and the bankrupt cryptocurrency lender Voyager Digital. According to the document, Binance.US’s terms of service and restructuring plan contain many “insufficient” disclosures, including the failure to fully inform unsecured creditors. According to the plan, they may only get 24% – 26% of the recovery, rather than 51% of the recovery according to Chapter VII.

Texas opposes the proposed transaction between Binance.US and Voyager due to insufficient disclosure of terms and restructuring plan

Interpretation of the news:


The proposed acquisition of Voyager Digital by Binance.US faced regulatory opposition from the Texas Securities Commission and the banking department, according to court documents published on February 24. This transaction has been under scrutiny due to a lack of transparency in Binance.US’s restructuring plan and terms of service.

The primary concern of the regulators is the inadequate disclosure to unsecured creditors. The restructuring plan mentions that they could receive only 24%-26% of the recovery instead of the standard 51% under Chapter VII. The regulators have deemed this as insufficient because these low rates may impact the credibility and productivity of the company while recovering from bankruptcy, ultimately harming the investors.

The court documents also highlighted that the proposed transaction fails to explain fully important details about the impact of the acquisition on clients, including the impact on user data, which contradicts the regulators’ data privacy policies.

Binance.US, on the other hand, had argued that Voyager had manipulated its contract with creditors with a self-serving deal before filing for bankruptcy. According to Voyager, Binance.US is offering $2M in cash and 5 million Binance Coins. However, Binance.US admits they have not arranged specific financial support.

The Texas regulators’ opposition could pose a significant setback for Binance.US as it tries to expand into the U.S. market. Regulators’ concerns about a lack of transparency could also have an impact on how other companies undertake restructuring plans and transactions.

In conclusion, the regulatory issues surrounding the proposed acquisition of Voyager Digital by Binance.US boil down to the issue of insufficient disclosures. To avoid regulatory opposition, clear communication with investors and full disclosure should be a priority. Companies must ensure that all stakeholders are aware of potential deals and restructuring plans’ long-term implications to nurture a positive business environment.

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