11/18/2023 0 Comments Binance us not in texas![]() ![]() However, the objection by the Texas regulatory bodies could pose a major obstacle to the deal. The objection, filed on February 24, cites "inadequate" disclosures in Binance.US's terms of service and restructuring plan, including the failure to inform unsecured creditors that they may only receive a recovery rate of 24-26% under the plan, compared to the 51% they would receive under Chapter 7.īinance.US had disclosed its agreement to purchase Voyager Digital's assets for $1.022 billion in December, a move that was expected to significantly expand its presence in the US crypto market. Texas Disapproves Proposed Deal between Binance.The State Securities Board and Department of Banking of Texas have filed an objection to the proposed deal between Binance.US and crypto lender Voyager Digital, which filed for bankruptcy in the US in December 2021. And for this, it will start investigating Binance.US alongside some other debtors for possible violations of federal securities laws. The top regulator alleges that some parts of the restructuring plan violate securities law. Meanwhile, the filing follows barely a few days after the Securities and Exchange Commission (SEC) submitted a filing of its own to a New York bankruptcy court. Therefore, holding on to consumers’ coins for those six months achieves nothing. The objection also notes that it is practically impossible for Binance.US to bag the license in such a little time. ![]() It is during this time that Binance.US would seek an operational license in the state. At least, for about six months after the agreement. Therefore, digital assets belonging to customers that reside in Texas would have to be held by Voyager. This is so because Binance.US is not yet licensed to operate in the state. “If any issues arise in the customers’ access to or use of Binance.US’s services, the customers have absolutely no right to challenge the issue.”Īnother major point that the filing highlights is that the plan appears to discriminate unjustly against Texas customers. But then, if any issues later arise, the account holders will have no legal rights whatsoever. That is, as opposed to the 51% they could receive under Chapter 7.įurthermore, Texas also notes that Binance.US failed to let account holders know that they will be required to allow their “personally sensitive information” to be transferred to any party in any part of the world. Texas Issues Reservations about Binance.US Terms of ServiceĪccording to the court document, Binance.US does not expressly state in the plan that unsecured creditors may only recover between 24 to 26% of their funds. However, new revelations show that there might be some inadequacies in the company’s terms of service. Recall that in December, Coinspeaker reported that Binance.US has agreed to buy Voyager’s assets for just over $1 billion. The motion, which was jointly submitted by the Texas State Securities Board and the Department of Banking, has some reservations about the terms and conditions of the deal. ![]() Coinspeaker Texas Disapproves Proposed Deal between Binance.US and Voyager DigitalĪ recent court filing has revealed that Texas is moving against the proposed buyout deal between Binance.US and defunct crypto lender Voyager Digital. ![]()
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