, 2022-10-17 20:05:58,
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Texas is investigating whether a major digital asset exchange and its billionaire founder have broken the state’s securities law.
Since last week, the Texas State Securities Board has been scrutinizing whether FTX is offering unregistered securities to residents through its yield-bearing cryptocurrency accounts. The investigation is outlined in an Oct. 14 filing for the bankruptcy process of Voyager Digital Holdings, a crypto brokerage firm whose assets FTX won in an auction last month. Texas also started investigating Voyager after it imploded in July.
The FTX investigation also names CEO Sam Bankman-Fried, who is a major supporter of Beto O’Rourke’s campaign for Texas governor. In the latest fundraising period between July 1 and Sept. 29, the crypto billionaire topped the Democrat’s donor list with a $1 million contribution.
Joe Rotunda, the state securities board enforcement director who drafted the filing, told The Texas Tribune that the investigation was not prompted by any complaints. Instead, he recalled noticing that FTX has started offering interest-bearing products to retail investors in the U.S. and wanted to see what a normal Texan would experience in purchasing this type of investment.
And while FTX has not registered to sell securities in Texas, Rotunda found that he could easily join the exchange’s yield-earning program even after listing his…
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