Texas regulators are investigating crypto exchange FTX Trading, FTX US, and founder and CEO Sam Bankman-Fried over potential securities violations.
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According to a state filing, regulators are probing whether yield-bearing accounts of the platform should be viewed as unregistered and non-permitted securities. The document says FTX products are similar to the interest-bearing depository accounts offered by Voyager Digital, a cryptocurrency lending platform which filed for bankruptcy in July. Voyager is also under an investigation by the authorities.
Director of Enforcement for the Texas State Securities, Board Joseph Jason Rotunda wrote that FTX US hasn't registered to offer or sell securities in Texas.
Rotunda said he installed FTX Trading App and found out that he was able to earn interest based on his Ether deposits and transfer funds from his bank account by providing personal information. He mentioned that FTX informs customers that they can access the yield program in one of the FTX permitted jurisdictions, while the program was available in Texas despite not having permission from authorities.