View profile

FTX and Sam Bankman-Fried facing massive criminal probe amid unregistered securities offerings

TSSB Director of Enforcement announced recently that FTX US should be barred from being allowed to purchase Voyager’s assets because of these infractions of the securities law
An Oct. 14 court filing has revealed that Texas State Securities Board (TSSB) is investigating FTX.US and Sam Bankman-Fried over the offering of unregistered securities.
The filing was made by Joseph Rotunda, the Director of Enforcement at TSSB. He claimed the crypto exchange violated state law by offering yield-bearing products to its U.S. customers. According to him, the FTX product is similar to the yield-bearing depository accounts offered by bankrupt crypto lender Voyager Digital.
Rotunda wrote that the exchange’s terms and conditions said it would not provide its services to U.S. residents. However, he discovered he was earning around 8% APR on his Ethereum (ETH) deposits with the firm. He said:
“The yield program appears to be an investment contract, evidence of indebtedness and note, and as such appears to be regulated as a security in Texas as provided by Section 4001.068 of the Texas Securities Act.”
He continued that “FTX Trading and FTX US may not be fully disclosing all known material facts to clients prior to opening accounts and earning yield, thereby possibly engaging in fraud and/or making offers containing statements that are materially misleading or otherwise likely to deceive the public.”
This is not the first time the FTX exchange is being looked at by regulators. Earlier this year, Congress summoned FTX CEO Sam Bankman-Fried to speak about Crypto fraud. They also were a key player in the Tether fraud scandal, which was the main driver in pumping Bitcoin from $3K to $69K. 
Don’t miss out on the other issues by CryptoWhale
Did you enjoy this issue? Yes No
CryptoWhale @cryptovinco

#1 Finance Newsletter - Join Over 230,000+ Subscribers in Staying Up To Date On Everything Crypto and Stock Related.

Subscribers will receive weekly insights into must-read crypto news events, Bitcoin and altcoin price predictions, market research, and contrarian financial perspectives.

You can manage your subscription here.
In order to unsubscribe, click here.
If you were forwarded this newsletter and you like it, you can subscribe here.
Created with Revue by Twitter.