Share this article
Sam Bankman-Fried Called to FTX Hearing by Texas Securities Regulator
The Texas State Securities Board has been investigating FTX US since October.
Updated Nov 29, 2022, 10:16 p.m. Published Nov 29, 2022, 9:52 p.m.
Ex-FTX CEO Sam Bankman-Fried has been called to a Feb. 2 hearing to answer to claims from a Texas regulator that FTX US offered unregistered securities products through its yield-bearing service.
The Texas State Securities Board (TSSB) scheduled the administrative hearing, accusing Bankman-Fried’s company of securities violations in Texas, although the disgraced CEO is no longer running the company he founded, which is now mired in bankruptcy proceedings. The board, which sent a registered letter to Bankman-Fried’s address in the Bahamas informing him of the hearing, suggested the proceedings could be conducted over Zoom.
STORY CONTINUES BELOW
FTX Capital Markets LLC is registered as a dealer with the board, and “Texans were able to buy and sell publicly traded stock through the firm,” according to the hearing notice that was dated Nov. 22. The state 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, when 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.
Speaking at a panel discussion with FTX General Counsel Ryne Miller in New York in October, Rotunda said he considered filing an enforcement action as a last resort. He added that the TSSB preferred to work through issues with companies before an enforcement action became necessary, and FTX had, up until that point, been cooperative.
Rotunda did not return CoinDesk’s request for comment by the time of publication.
The state matter may have to stand in line behind a long list of federal and international investigations over what went on inside FTX.
The collapse of the Bahamas-based exchange 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.).
Read more: The FTX Downfall: Full Coverage
More For You
알아야 할 것:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
CFTC Gives No-Action Leeway to Polymarket, Gemini, PredictIt, LedgerX Over Data Rules
The CFTC granted the operators of Polymarket, PredictIt, Gemini and LedgerX permission to skip certain recordkeeping requirements.
What to know:
- The Commodity Futures Trading Commission granted several prediction-market firms certain regulatory leeway in meeting derivatives rules, suggesting they won't get into enforcement trouble if they do business as intended.
- The no-action letters went to Polymarket, PredictIt, Gemini and LedgerX/MIAX.
Top Stories
