FTX CEO Sam Bankman-Fried Under Texas Probe

Texas regulators are now investigating FTX chief executive officer Sam Bankman-Fried in the Voyager case, as per a court filing. Joseph Rotunda, director of Enforcement Division of Texas state securities board, said FTX, along with SBF was under investigation. The filing mentioned that FTX US may be offering unregistered securities in the form of yield-bearing accounts to U.S. residents.

FTX, Sam Bankman-Fried Under Probe In Voyager Texas case

Taking reference to the case filed by the Enforcement Division against Voyager Digital on April 12, 2022, the official made the comments. The notice of hearing accused the company of offering yield bearing depository accounts regulated as securities in Texas, violating various laws, it said. The filing also mentions that FTX US is not registered as a money transmitter or in any other capacity with the Texas Department of Banking.

Probe Around Unregistered Securities

Also, it is not registered as a securities dealer with the Texas State Securities Board, it added. Rotunda said the agency is currently probing FTX Trading, FTX US, and their principals, including Sam Bankman-Fried. The authorities appear to be looking at whether FTX is providing unregistered securities in the form of yield-bearing accounts to U.S. residents.

“I am aware that FTX Trading, along with FTX, may be offering unregistered securities in the form of yield-bearing accounts to residents of the United States. These products appear similar to the yield-bearing depository accounts offered by Voyager Digital, and the Enforcement Division is now investigating FTX Trading, FTX US, and their principals, including Sam Bankman-Fried.”

Last month, FTX US purchased the assets of Voyager Digital in a deal that included $1.3 billion in value of all cryptocurrencies. In total, the deal was for $1.4 billion for the assets of the bankrupt crypto lender. In the last one year, Sam Bankman-Fried has been involved in buying out of several troubled crypto companies. The crypto billionaire invested in many companies in the wake of a series of events that led to a crypto crash earlier this year.

Anvesh reports major developments around crypto adoption and trading opportunities. Having been associated with the industry since 2016, he is now a strong advocate of decentralized technologies. Anvesh is currently based in India. Follow Anvesh on Twitter at @AnveshReddyBTC and reach him out at [email protected]

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