The benefits to creditors from an offer from Binance US to buy up bankrupt crypto lender Voyager hinge on a $445 million loan claim by Alameda Research, making the deal potentially not worth bothering with, Texas regulators said in a Friday court filing.

The filing by the Texas banking and securities agencies said that Voyager’s creditors might be better off if the company simply liquidated assets, and warned that would-be buyer Binance US may be illegally offering securities via its staking program.

Voyager lawyers have said the Binance US deal has significant creditor support, but the Texas filing says they weren’t sufficiently warned about the risks of Alameda, the trading arm of collapsed crypto exchange FTX, successfully clawing back loan repayments made before its own November bankruptcy.

The Binance US deal, worth $1.02 billion, should also be quashed because customers weren’t warned personal data could be transferred to underregulated overseas jurisdictions, said the filing.

(By Jack Schickler)

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