Texas Doubles Down on Attempt to Block Binance.US Acquisition of Voyager Digital Assets
Binance.US, the American arm of crypto exchange Binance, has hit yet another roadblock in its attempts to buy the assets of the bankrupt crypto lending firm Voyager Digital: Texas, USA, officials have once again objected to the deal between the exchange and the lender.
The issue remains the connection between Binance.US and Binance. Lawyers representing the Texas State Securities Board and the Texas Department of Banking filed documents in New York bankruptcy court on Friday, as reported by Bloombeg, arguing that,
"The independence of Binance.US from Binance.com is of the utmost importance to safeguarding consumers’ privacy and coin from improper uses. While Binance.US, as Purchaser, purports to operate independently from Binance.com, the [terms of use] suggest otherwise."
The Texas legal team is concerned about "inadequate" disclosures around the Binance.US terms of use. Per the filing, sections of the Binance.US terms of use "purport to explain the rights clients give to Binance.US and its ‘parents, subsidiaries, afliates, entities under common ownership, or otherwise related parties" - and these parties “appear to include Binance.com, BAM Management Co., CPZ Holdings, and [Binance CEO Changpeng] Zhao."
In January, the two regulators argued that there are close connections between the above-named companies: Zhao owns CPZ Holdings, which owns Binance.US operator BAM Management, while BAM Trading is a wholly-owned subsidiary of BAM Management, they said. The lawyers claimed that, "based on this organizational structure, Zhao appears to be the indirect owner of both Binance.US and Binance.com."
Per the latest filing,
These related parties "play key roles in the services provided by Binance.US and may even efectively permit
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