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FTX Boss Under Investigation by Securities Regulator

Mon, 10/17/2022 - 18:09
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Alex Dovbnya
The FTX boss and FTX US are under investigation by the Texas-based securities regulator
FTX Boss Under Investigation by Securities Regulator
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According to a Monday report by Barron's, FTX CEO Sam Bankman-Fried and FTX US, the American subsidiary of the cryptocurrency giant, are under investigation by the Texas State Securities Board.

As per a filing submitted by enforcement director Joe Rotunda, FTX US may be offering unregistered securities in the form of yield-bearing accounts in the U.S.

The exchange is not registered as a money transmitter or a seller of payment instruments with the Texas Department of Banking. Furthermore, it is not registered as a dealer of securities with the Texas State Securities Board.   

Rotunda claimed that he was able to create a yield-bearing account in the U.S even though the company claims that it doesn’t provide such services.

The damning allegations were made to a bankruptcy court that is currently overseeing the sale of Voyager Digital's assets.

FTX reportedly agreed to pay $51 million in order to acquire Voyager’s assets.

The cryptocurrency exchange told Barron’s that it was already in talks with the regulators. FTX claims that it has an active application in the state.  

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.