{"id":14116,"date":"2022-10-17T21:04:06","date_gmt":"2022-10-17T21:04:06","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/texas-securities-regulators-and-attorney-general-object-to-ftx-purchasing-voyager-digital-regulation-bitcoin-news\/"},"modified":"2022-10-17T21:04:06","modified_gmt":"2022-10-17T21:04:06","slug":"texas-securities-regulators-and-attorney-general-object-to-ftx-purchasing-voyager-digital-regulation-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/texas-securities-regulators-and-attorney-general-object-to-ftx-purchasing-voyager-digital-regulation-bitcoin-news\/","title":{"rendered":"Texas Securities Regulators and Attorney General Object to FTX Purchasing Voyager Digital \u2013 Regulation Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Regulators from the state of Texas and the state\u2019s attorney general are objecting to FTX purchasing Voyager Digital, as the state\u2019s securities commissioner needs to \u201cdetermine whether FTX US is complying with the law.\u201d<\/strong><\/p>\n

Texas State Securities Board, Department of Banking, and Attorney General File Objection Against FTX Buying Voyager Digital<\/h2>\n

According to a bankruptcy court document<\/a> filed on October 14, 2022, the Texas State Securities Board (SSB), the Texas Department of Banking, and the Texas attorney general are objecting to FTX\u2019s solicitation of Voyager Digital. FTX, the exchange led by the crypto billionaire Sam Bankman-Fried, bid to purchase Voyager Digital and its assets for $1.4 billion.<\/p>\n

The news follows Bankman-Fried\u2019s statements<\/a> before the purchase when he said the company was prepared to deploy billions on acquisitions. Before the attempt to purchase Voyager, Bankman-Fried and FTX further announced<\/a> at the end of July, that he was \u201chappy to do what we can to get liquidity to Voyager\u2019s customers.\u201d<\/p>\n

However, regulators from the state of Texas and the state\u2019s attorney general want to stop the acquisition because they believe regulators, and the Texas securities commissioner need to investigate FTX. While FTX is a money services business with FinCEN, the Texas SSB insists FTX is \u201cnot, however, registered as a money transmitter or in any other capacity with the Texas Department of Banking and it is not registered as a securities dealer with the Texas State Securities Board.\u201d<\/p>\n

While FTX won the auction<\/a> to purchase Voyager Digital, the director of the Enforcement Division of the Texas SSB, Joseph Jason Rotunda, explained that FTX may be violating securities laws stemming from the Texas Securities Act. Rotunda said that while he downloaded the FTX mobile applications, and told the firm he was a Texas resident, the FTX application shows Rotunda is \u201cearning yield on [ethereum]\u201d and \u201cthe yield is valued at 8 percent APR.\u201d<\/p>\n

\u201cAn ongoing investigation by the Enforcement Division of the Texas State Securities Board, [shows] the yield program appears to be an investment contract, evidence of indebtedness and note, and as such appears to be regulated as a security in Texas as provided by Section 4001.068 of the Texas Securities Act,\u201d Rotunda\u2019s filing explains. \u201cAt all times material to the opening of this FTX account, FTX Trading and FTX US have not been registered to offer or sell securities in Texas.\u201d The Texas SSB director added:<\/p>\n

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FTX Trading and FTX US may therefore be violating Section 4004.051 of the Texas Securities Act.<\/p>\n<\/blockquote>\n

On Twitter, Bankman-Fried hasn\u2019t commented on the recent actions filed by the regulators from the state of Texas, and the state\u2019s attorney general. Moreover, the FTX CEO has been very vocal that he and his company are supportive of regulation in recent times. Just recently, Bankman-Fried explained<\/a> that he believes enhanced regulatory oversight for the stablecoin industry is \u201ccrucial.\u201d On Monday, Bankman-Fried said he looked forward to FTX being regulated in Dubai.<\/p>\n

\u201cFTX is excited to be regulated in Dubai by VARA! We\u2019re excited to expand out our presence in the city, and to work with regulators who have taken the lead in establishing a regulatory framework for digital assets, protecting customers, and allowing for innovation,\u201d the FTX CEO tweeted<\/a>.<\/p>\n

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Attorney General<\/a>, Crypto<\/a>, Cryptocurrency<\/a>, Dubai<\/a>, ftx<\/a>, FTX Exchange<\/a>, FTX investigation<\/a>, Joseph Jason Rotunda<\/a>, Regulation<\/a>, Regulators<\/a>, Sam Bankman-Fried<\/a>, SSB director<\/a>, Texas<\/a>, Texas Regulations<\/a>, Texas Securities Act.<\/a>, Texas SSB<\/a>, Texas State Securities Board<\/a>, US Regulations<\/a>, Voyager Digital<\/a><\/div>\n<\/div>\n

What do you think about the regulators from the state of Texas objecting to FTX purchasing Voyager Digital? Let us know your thoughts about this subject in the comments section below. <\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons, Editorial photo credit: Koshiro K \/ Shutterstock.com<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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