A Texas regulator has called ex-FTX CEO Sam Bankman-Fried to a Feb. 2 hearing to answer to claims that FTX US offered unregistered securities products.
The Texas State Securities Board (TSSB) is accusing Bankman-Fried’s company of securities violations in Texas.
The board sent a registered letter to Bankman-Fried’s address in the Bahamas informing him of the hearing and suggested the proceedings could be conducted over Zoom.
The regulator is seeking a cease-and-desist order for FTX to halt securities fraud in the state, to return money to affected investors and to target Bankman-Fried with fines.
The TSSB’s investigation into FTX US became public
In October, TSSB’s Director of Enforcement Joe Rotunda claimed in a filing in the Voyager Digital bankruptcy case that FTX US may have been violating state law governing the registration and sale of securities products because it was offering a yield-bearing product to U.S. customers.
The collapse of FTX is currently being investigated by the U.S. Securities and Exchange Commission (SEC), the Department of Justice (DOJ), the Bahamian police, and Senators Elizabeth Warren (D-Mass.) and Dick Durbin (D-Ill.).