Texas financial regulator called former FTX CEO Sam Bankman-Fried to a hearing to determine whether FTX sold unregistered securities to its customers.
The Texas State Securities Board (TSSB) accused FTX US of violating the state’s security laws, and summoned Bankman-Fried to appear for an administrative hearing on Feb. 2. The notice indicated that the former crypto billionaire could appear via Zoom.
The goal of the hearing is to determine whether the regulator will issue a cease and desist order against FTX and its affiliates, ordering them to partially stop operations in Texas. Moreover, the hearing would determine whether Bankman-Fried would be ordered to refund customers and pay fines for violating Texas law.
The Texas State Securities Board listed several entities potentially involved in the sale of unregulated securities. These include FTX US, FTX Capital Markets, LLC, and FTX US Derivatives LLC.
TSSB also pointed…
