Texas investigates FTX for securities violations after objecting to Voyager auction

Texas is attempting to impose conditions on FTX’s acquisition of assets from Voyager Digital. It is useful to note that Voyager Digital operates under court protection from federal bankruptcy, arguing that both cryptocurrency exchanges violate state laws.

FTX, whose US company agreed last month to spend $1.4 billion to purchase Voyager’s bitcoin assets and use them to assist the bailout of investors in an effort to win new clients, contested the state’s claim that it was operating illegally.

The Texas State Securities Board is investigating FTX and its owners, including CEO Sam Bankman-Fried, according to documents filed in the bankruptcy case on Friday. In limited opposition to the asset purchase, the state claimed that FTX and Voyager are conducting money-transmission enterprises without the necessary permits.

The Securities and Exchange Commission and the Texas Department of Banking want language added to the sale agreement stating that Voyager is still liable for illegal conduct that occurred after the bankruptcy petition was filed but before the sale transaction closes, and that FTX must comply with state law before doing business in Texas.