Texas is looking into the sale of unregistered securities by Sam Bankman-Fried, FTX, and FTX.US. in connection with the ongoing Voyager bankruptcy proceedings, in which FTX has made a bid for the lending platform, the probe was made public in a fresh file.
According to Texas State Securities Board Director of Enforcement Division Joseph Rotunda, downloading the FTX program was simple, and after accurately entering his KYC information, he was able to start collecting yield on his ether investment.
Joseph further stressed that FTX US is not authorized to transact in securities or as a money transmitter in Texas.
The fact that the filing specifically requests that “FTX US should not be permitted to purchase the assets of the debtor unless or until the Securities Commissioner has an opportunity to determine whether FTX US is complying with the law” will probably complicate Bankman-ongoing Fried’s efforts to acquire all failing cryptocurrency lending platforms.
Additionally, the Securities and Exchange Commission (SEC) has been vehemently opposing cryptocurrency yield programs, which has prevented Coinbase from making its Earn product available.
It is also said to have been looking into Gemini and Celsius, two other bitcoin lenders.
Protos previously requested papers under the Freedom of Information Act from the SEC about investigations into FTX US’s sale of unregistered securities, but the request was turned down due to an exemption that shields records gathered for law enforcement from publication.