Regulators claim both companies are running unlicensed money-transfer businesses.
A separate declaration from the securities board’s enforcement director revealed that FTX US, parent company FTX Trading,and two other executives are being investigated for potentially “offering unregistered securities in the form of yield-bearing accounts to residents of the United States.” It added that the accounts seem to be similar to investments offered by Voyager.
Joseph Jason Rotunda, the enforcement director, said he was able to transfer $50 from his bank account to an account he opened withon Friday, using his home address in Austin. After doing so, he transferred 0.1 ether from a cryptocurrency wallet to the account. He said the cash transfer could take up to six days but the ether transmission was processed in minutes.
Rotunda said he was alerted by the FTX app that he was eligible to earn a yield of up to 8% a year on his deposits, although it specified that the money was coming from FTX US rather than FTX Trading and was available “on a promotional basis” to U.S. users. He said that the yield program “appears to be an investment contract” and thus should fall under Texas registration requirements for securities. He said the FTX entities were not registered to offer securities in Texas, and that the yield program also was not registered with the state. Additionally, the statement raised the possibility of fraud for lack of required disclosures to potential clients before they opened accounts.
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