The Texas State Securities Board, or SSB, and the Texas Department of Banking filed a supplemental declaration on Oct. 14 in the Voyager Digital case stating that the SSB is investigating FTX Trading and FTX US and their principals, including co-founder and CEO Sam Bankman-Fried, for allegedly offering unregistered securities in the United States. FTX US won the auction for the remaining Voyager Digital assets on Sept. 26.
The supplemental declaration from the Texas regulators is attached to an objection to the sale of Voyager Digital assets to FTX filed by the Office of the Texas Attorney General also on Oct. 14. In that objection, the state claims that Voyager Digital and FTX are not in compliance with Texas law and that “the proposed sale, or order approving the sale, attempts to limit the Debtors’ liability for unlawful […] conduct for which state-regulatory fines and penalties may apply.” Specifically, according to the objection, Voyager Digital conducted unlicensed money transmissions, as it was not registered as a securities dealer in Texas.