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.
Yuri Molchan
Tomiwabold Olajide
Vladislav Sopov
Dan Burgin