FTX US Becomes Subject Of Texas Securities Violation Investigation

FTX US and its founder Sam Bankman-Fried are under investigation by the Texas securities regulator. Additional statements from Texas regulators are attached to the objection to the sale of Voyager Digital assets to FTX filed by the Office of the Texas Attorney General on October 14.

The Texas State Securities Commission and the Texas Department of Banking filed an additional statement late October 14 in the Voyager Digital case stating that the SSB is investigating FTX Trading and FTX US and Chief Executive Officer Sam Bankman-Fried for allegedly offering securities unregistered in the United States.

“The Enforcement Division is now investigating FTX Trading, FTX US, and their principals, including Sam Bankman-Fried,”

Rotunda said in the filing

FTX US won the auction for the remaining Voyager Digital assets on September 26. The statement also included objections to FTX’s continued acquisition of Voyager assets during the investigation. Specifically, according to the objection, Voyager Digital conducted the transfer without a license, because it was not registered as a securities dealer in Texas.

“FTX US should not be permitted to purchase the assets of the debtor unless or until the Securities Commissioner has an opportunity to determine whether FTX US is complying with the law.”

Rotunda concludes

The event marks another expansion of enforcement agencies’ probes into crypto industry practices.

Despite facing investigation, Sam Bankman-Fried announced on Twitter on October 17 that the company has been registered by Dubai’s Virtual Assets Authority. Its subsidiary FZE received a Minimum Usable Product license in July.

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