Texas' State Securities Board and the Department of Banking are objecting to a proposed deal between Binance. US and bankrupted crypto lender Voyager Digital, shows a court filing from Feb. 24.

According to the document, Binance. US's terms of service and restructuring plan contain a number of "inadequate" disclosures, including not informing unsecured creditors adequately that under the plan they may only get 24%-26% recovery, rather than the 51% they would receive under Chapter 7.

The filing also notes the company's disclosure statement fails to inform that account holders are required to allow the transfer of "personally sensitive information to any party in any part of the world as required by Binance. US, and then strips the account holders of any legal recourse for any issues that may arise." As explained in the objection:"So, under these ToUs, customers’ information can be transferred to almost any company or person that Binance. us desires, and, 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."

Further, the document claims that the plan "unfairly discriminates against Texas consumers." Since Texas is not a supported jurisdiction by Binance. US, customers in the state would have their digital assets held by Voyager for six months after the agreement, during which time Binance. US would seek licensing in the state.