FTX US accused of securities-law violations

The financial regulator and the Texas attorney general are seeking to block FTX US from purchasing the assets of the bankrupt lender Voyager Digital. The firm and its chief, Sam Bankman-Fried, are suspected of securities-law violations.

“FTX US should not be allowed to purchase the debtor’s assets until the Securities Commissioner has had the opportunity to determine whether the exchange and related and/or affiliated entities, including those controlled by the same management, are in compliance with the law,” according to the court documents.

Joseph Jason Rotunda, director of enforcement at the Texas State Securities Board, said his agency is investigating the activities of FTX Trading, FTX US and their executives, including Sam Bankman-Fried.

The regulator is interested in the exchange’s interest-bearing deposit products that “show signs of an investment contract”.

On July 5, Voyager Digital filed for bankruptcy. The company put total liabilities in the range of $1 billion to $10 billion.

The broker is one of the lenders to hedge fund 3AC. The latter failed to repay debts of 15,250 BTC and 350 million USDC, so in June Voyager Digital sent him default notice.

Alameda Research, linked to FTX CEO Sam Bankman-Fried, turned out to be Voyager’s second-largest borrower after 3AC, at $377 million.

Last month, FTX US won the auction to sell Voyager Digital’s assets, bidding around $1.4 billion.

Shortly afterward, Brett Harrison, president of the US arm of FTX, announced his resignation.

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