Texas regulator subpoenas Sam Bankman-Fried for hearings on FTX collapse

The Texas State Securities Board (USA) sent Sam Bankman-Fried a notice to participate in hearings on February 2. The topic of discussion will be the collapse of the cryptocurrency exchange.

The regulator alleges that FTX Capital Markets sold unregistered securities to residents of the state as savings products.

According to the document, the agency intends to order the platform to cease violations and return money to affected investors. Bankman-Fried faces a fine.

The regulator began an investigation in October as part of examining the deal to buy FTX US assets of the bankrupt lender Voyager Digital. At that time, the agency’s Enforcement Division Director Joseph Jason Rotunda said there had been dialogue with the exchange and that pursuing an enforcement action was under consideration as a last resort.

Earlier in November, Bahamian senator, minister of legal affairs and attorney-general Ryan Pinder stated that an investigation into FTX is ongoing.

Lawyers interviewed by Fortune said that the U.S. Department of Justice has all it needs to bring criminal charges against Bankman-Fried and other executives of the failed exchange.

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