Texas regulator requests testimony from Bankman-Fried in a securities lawsuit
Former FTX CEO Sam Bankman-Fried has been called by the Texas State Securities Board for a hearing on suspected state securities breaches on February 2.
Sam Bankman-Fried, the former CEO of FTX, has a court date in Texas. The Texas State Securities Board has requested that Bankman-Fried appears on February 2, in response to an enforcement action initiated today claiming that FTX violated various state securities laws.
Prior to FTX’s collapse in early November, the inquiry focused on the company’s interest-bearing accounts and stock trading. The government was already investigating the company before it filed for bankruptcy earlier this month.
In October, the Texas State Securities Board attempted to prevent FTX from acquiring assets from insolvent crypto lender Voyager Digital, claiming worries that FTX may have broken Texas securities and money transmitter rules and an ongoing investigation into the subject.
Today, the regulator officially charged Bankman-Fried, the former CEO of the firm, with various infractions originating from FTX’s corporate activities in the state, as well as “deliberately failing to disclose key information” as asked by the regulator.
David Mills, who is identified in the enforcement action as Bankman-attorney, Fried’s did not reply to a request for comment. Bankman-Fried resigned as CEO of FTX after the company filed for bankruptcy.
The Texas State Securities Board is not the only organization investigating FTX’s business transactions. Multiple congressional committees have planned hearings on FTX, and the company’s leadership has said that it is working with Justice Department and Securities and Exchange Commission investigations.