Digital Assets: FTX And Its Billionaire Owner Sam Bankman-Fried Being Investigated By Texas State Securities Board

October 18, 2022 | Digital Assets, News, Regulations

Crypto exchange FTX is under the lens for offering interest-bearing schemes that Texans can invest in.

Joe Rotunda, the enforcement director of the Texas State Securities Board (TSSB), found that he could easily apply to join FTX’s yield-earning offering even though he listed his Austin address. The problem? FTX has not registered to sell securities in Texas. It appears, therefore, that FTX has been offering unregistered securities to Texas residents through its yield-bearing cryptocurrency accounts – a matter under investigation by the TSSB since last week. (The Texas Tribune)

Also drawn into the investigation is billionaire Sam Bankman-Fried, the CEO and founder of FTX, who topped the list of Democrat donors for Beto O’Rourke’s campaign for Texas governor with a contribution of $1 million during the latest fundraising period between July 1 and Sept. 29.

According to Rotunda, as of Monday, the investigation was continuing, but is likely to take less time to conclude given some ongoing business matters. The investigation may put a spoke in FTX’s $1.4 billion acquisition of bankrupt crypto player Voyager Digital.

Rotunda told the Tribune that the TSSB would like to draw FTX into compliance with securities laws by obtaining a license to sell securities in Texas.

“We want Texans to have the opportunity to invest in what they want to invest in. We want to make sure they’re protected, and that’s why we’re trying to get companies into compliance,” he said. “The entire goal is to protect Texas.”

Related Story: Regulators Investigating Withdrawals Ban By Celsius

Image Credit: Wikimedia Commons

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Venture Capital: Swedish Electric Self-Driving Truck Start-up Einride Lands $500M
December 8, 2022     ESG and Sustainability, News, Venture Capital

Einride, the Swedish electric self-driving truck start-up, announced a raise of $500 million comprising an equity-based $200 million Series C portion from investors including Northzone, EQT Ventures, Temasek, Swedish pension…
FinTech: Brazil’s MercadoLibre To Process Business Payments On WhatsApp
December 8, 2022     FinTech, News

Pedro Arnt, CFO at Latin American e-commerce retailer and fintech firm MercadoLibre (NASDAQ: MELI) is in discussions with Meta (NASDAQ: META) to process payments in Brazil on the latter’s WhatsApp…
Alternative Investments/Real Estate: Dimensional Launches Global Real Estate ETF
December 8, 2022     Alternative Investments, News, Real Estate

Dimensional Fund Advisors has added a real estate ETF to its ETF line-up. The Dimensional Global Real Estate ETF offers investors the opportunity to invest in a variety of US…
Artificial Intelligence: Soon, A New York Festival For AI-Created Films
December 8, 2022     Artificial Intelligence, News

Runway ML, the company behind text-to-image AI system Stable Diffusion, is hosting a festival of short films made using AI. Films with a runtime of between one and 10 minutes…