The Texas State Securities Board and the Texas Department of Banking filed a supplemental declaration in the Voyager Digital case stating that the SSB is investigating FTX Trading and FTX US and their principals for allegedly offering unregistered securities in the United States.
The supplemental declaration from the Texas regulators is attached to an objection to the sale of Voyager Digital assets to FTX filed by the Office of the Texas Attorney General. In that objection, the state claims that Voyager Digital and FTX are not in compliance with Texas law and that the proposed sale, or order approving the sale, attempts to limit the Debtors’ liability for unlawful conduct for which state-regulatory fines and penalties may apply.
The director of the SSB enforcement division, Joseph Rotunda, stated in the declaration that he was able to download the FTX Trading app to his smartphone and create a yield-bearing account using his own name and Austin, Texas address. FTX Trading does not conduct business in the United States.
Rotunda concluded, 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.
