FTX, CEO Sam Bankman-Fried investigated by Texas securities regulator – The Washington Post

Texas’s securities regulator is investigating crypto trading platform FTX and its billionaire founder, Sam Bankman-Fried, for selling an investment product that potentially violated state law.

The probe, announced in a Friday filing by Texas State Securities Board enforcement director Joe Rotunda, centers on whether FTX has been illegally offering Texans accounts that pay interest on crypto deposits.

Rotunda argues that the accounts are akin to securities and that the company should have registered with the state before signing up its residents. It’s the latest attempt by state financial watchdogs to crack down on leading crypto players as federal policymakers remain divided about how to write rules for the industry.

Source: FTX, CEO Sam Bankman-Fried investigated by Texas securities regulator – The Washington Post