Cryptocurrency exchange FTX US and its founder, Sam Bankman-Fried, are being investigated by Texas’ securities regulator.
Texas State Securities Regulators Investigate Cryptocurrency Exchange FTX.US and its Founder, Sam Bankman-Fried
The investigation was detailed in a statement made late Friday by Joe Rotunda, executive director of the Texas State Securities Board in Voyager Digital’s bankruptcy case.
“The Executive Department is currently investigating its executives, including FTX Trading, FTX US, and Sam Bankman-Fried,” Rotunda said in its application.
Rotunda, FTX’s investors cryptocurrency He said that they offer accounts that pay returns in exchange for investing their units in the firm.
Texas and dozens of other state securities regulators, as well as the US Securities and Exchange Commission (SEC), have tracked Voyager and other crypto firms for offering similar accounts that regulators say are unregistered securities that do not disclose their risks to investors.
Texas’ filing states that more research is needed to determine whether FTX violates the law.
Voyager was one of the few companies that offered crypto investors high returns for depositing their tokens on the platform. Federal and state agencies have disclosed investigations into Voyager and other firms such as bankrupt lender Celsius Network, which they say are illegally offering unregistered securities.
After the news, a 5 percent decline was seen in FTT, the token of FTX.
Voyager in July, bitcoin and declared bankruptcy amid major turmoil in the crypto market. In court filings, some firms contested that their products were securities.
In September, FTX won a tender to buy Voyager’s assets from bankruptcy in a deal valued at $1.4 billion. Rotunda said the firm should not be allowed to purchase assets until securities regulators determine that it complies with the law.
In February, BlockFi, which offers similar accounts, agreed to pay $100 million to the SEC and government agencies, the largest ever penalty under a crypto enforcement action. As part of this deal, BlockFi has agreed to either register with the SEC or make changes that would make such a registration unnecessary.
*Not investment advice.
For exclusive news, analytics and on-chain data Telegram our group, twitter our account and YouTube Follow our channel now! Moreover Android and iOS Start live price tracking right now by downloading our apps!