Regulation

FTX, Sam Bankman-Fried Probed by Texas Securities Regulator

State is probing whether crypto-earn offerings are securities
Texas said FTX shouldn’t be allowed to buy Voyager assets

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By Matt Robinson and Yueqi Yang

October 17, 2022 at 4:00 PM UTC

Updated on

October 17, 2022 at 5:07 PM UTC

This article is for subscribers only.

FTX Trading and its billionaire founder, Sam Bankman-Fried, are being probed by the Texas securities regulator over whether certain lending offerings violate state law.

Texas is investigating whether the company’s yield-bearing crypto accounts are illegal securities offerings being sold to U.S. residents, according to a Oct. 14 court filing in the bankruptcy of Voyager Digital Holdings. Until the state determines FTX is complying with the law, the agency said the company shouldn’t move forward with its $1.4 billion purchase of Voyager assets announced last month.