Texas objects to the Voyager auction and launches a securities investigation into FTX.

The Texas State Securities Board enforcement director downloaded an FTX Trading app – now no longer an FTX US app – in Texas and became capable of earning a living from it.

The Texas State Securities Board (SSB) and the Texas Department of Banking (DOB) filed a supplemental assertion on October 14 within the Voyager Digital case wherein it said that the SSB is investigating FTX Trading, FTX US, and their principals, together with co-founder and CEO Sam Bankman-Fried, for allegedly presenting unregistered securities within the United States. FTX US held the public sale for the final Voyager Digital belongings on Sept. 26.

The supplemental assertion from the Texas regulators is connected to an objection to the sale of Voyager Digital belongings to FTX filed with the aid of the Texas Attorney Generals office on Oct. 14. In that objection, the kingdom declares that Voyager Digital and FTX aren’t in compliance with Texas regulation and “the proposed sale, or order approving the sale, tries to restrict the Debtors legal responsibility for unlawful […] behavior for which kingdom-regulatory fines and consequences may also apply.” Specifically, consistent with the objection, Voyager Digital carried out unlicensed cash transmissions because it is now no longer registered as a security provider in Texas.

Director of the SSB enforcement division Joseph Rotunda stated in the assertion that he was capable of downloading the FTX buying and selling app to his phone and creating a yield-bearing account with his personal phone number and Austin, TX address.That app is related to FTX Trading, which does no longer conduct enterprise within the United States. Nonetheless, Rotunda said,

“The FTX Trading App now indicates that I am income yield at the ETH. The yield is worth eight percentage points. Based upon my income of yield and ongoing research with the aid of using the Enforcement Division of the Texas State Securities Board, the yield application seems to be a funding contract. “

Rotunda concluded, “FTX US ought to no longer be approved to buy the belongings of the debtor until or till the Securities Commissioner has the possibility to decide whether or not FTX US is complying with the regulation.”

Voyager Digital declared financial disaster in July. Its case is currently being heard in the US Bankruptcy Court for the Southern District of New York.The assertion also names FTX co-founder and chief generation officer Gary Wang, as well as FTX director of engineering Nishad Singh.

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In better news for the cryptocurrency exchange, Bankman-Fried announced on Twitter on October 17 that the company had been registered with Dubais Virtual Asset Regulatory Authority. Its FZE subsidiary obtained a Minimal Viable Product license in July.