FTX, Sam Bankman-Fried Probed by Texas Securities Regulator (1)

FTX Trading and its billionaire founder, Sam Bankman-Fried, are being probed by the Texas securities regulator over whether certain lending offerings violate state law.

Texas is investigating whether the company’s yield-bearing crypto accounts are illegal securities offerings being sold to U.S. residents, according to a Oct. 14 court filing in the bankruptcy of Voyager Digital Holdings. Until the state determines FTX is complying with the law, the agency said the company shouldn’t move forward with its $1.4 billion purchase of Voyager assets announced last month.

Texas State Securities Board enforcement director Joe Rotunda said he was able to access ...