News

Binance.US Faces Legal Challenge From Texas Over Restructuring And Terms

Key Points:

  • Texas objects to Voyager Digital Ltd. and Binance.us’s proposed deal, citing inadequate disclosure statements and insufficient information for general unsecured creditors.
  • Texas argues that holding assets for six months, post-confirmation serves no purpose. The plan’s releases and injunctions are a disguised discharge, not allowed under the Bankruptcy Code.
In a recent court filing, Texas has raised objections to the proposed deal between Voyager Digital Ltd. and Binance.us. The state argues that the disclosure statement is inadequate and that the plan cannot be confirmed as sufficient information has not been provided to inform general unsecured creditors of the potential decrease in their recovery, should Alameda prove its administrative expense claim.

The disclosure statement also fails to provide adequate information regarding the transfer, use, and indemnity requirements that account holders must agree to when using Binance.us services. Under Binance.us’s terms of use, customers’ information can be transferred to almost any company or person that Binance.us desires, and if any issues arise, customers have no right to challenge them.

The plan also discriminates unfairly against Texas consumers by holding their assets for six months post-confirmation. Texas argues that holding the assets serves no purpose as it will be almost impossible for Binance.us to be licensed by the Texas SSB and the DOB within six months.

Finally, Texas argues that the releases and injunctions provided for in the plan are nothing more than a disguised discharge, something that the Debtors are not allowed under 11 U.S.C. § 1141(d)(3) of the Bankruptcy Code and should not be approved.

The objection by Texas to the proposed deal between Voyager Digital Ltd. and Binance.us raises significant concerns about the adequacy of information provided to creditors and the potential risks associated with using Binance.us services. The objection also highlights the unfair treatment of Texas consumers under the proposed plan and the potential for Binance.us to gain access to their personal information without adequate regulatory oversight.

Texas has argued that holding the assets serves no purpose and that the releases and injunctions provided for in the plan are nothing more than a disguised discharge, which is not allowed under the Bankruptcy Code.

These objections raise serious questions about the viability of the proposed deal and the potential risks to creditors and consumers. As the case progresses, it will be interesting to see how these objections are addressed and whether the proposed deal can be approved.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Thana

Coincu News

Thana

I am a news editor at Coincu, where I produce daily editorial packages and manage the knowledge and review article sections. Before journalism, I earned a Bachelor's degree in Global Logistics and Supply Chain Management from Northampton University and studied news journalism at Press Association Training.

Recent Posts

Bitcoin Spot ETF Outflows Reach Second Highest in History

Bitcoin Spot ETF Outflows hit $541M on November 4, the second-highest single-day outflow in history.…

1 hour ago

PropiChain’s Token Presale Turns Heads as the First DeFi Platform to Merge NFTs with AI 

The hype around PropiChain’s token presale is due to its innovative integration of NFTs and…

4 hours ago

UK Pension Fund Cartwright Encourages 3% Allocation to Bitcoin Investment

UK pension fund Cartwright advised the country's first defined benefit pension fund to allocate 3%…

6 hours ago

Crypto PAC Fairshake Continues to Boost 2026 Election With Support from a16z

a16z and Coinbase have pledged substantial funds to crypto PAC Fairshake, aiming to support crypto-friendly…

7 hours ago

Bitcoin, Ethereum, And Solana Lead Crypto Market, But Not For Long With New AI Altcoin With 30,000% Potential, Expert Says

Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) dominate the crypto market, but experts warn that…

10 hours ago

Dogecoin Price Prediction: Will DOGE Ever Hit $0.7 Again? Why ETFSwap (ETFS) Is The Best Alternative For 100x Gains

Discover the future as the Dogecoin price aims for a $0.7 comeback and discover why…

13 hours ago

This website uses cookies.