FTX Token Price Nose-Dives After Securities Regulator Probe Into SBF and FTX.US

FTX US and Sam Bankman-Fried are under investigation by Texas securities regulators. How is the FTX token reacting?

according to a state presentation by Texas regulators, FTX US may be offering unregistered securities in the form of yield accounts to residents of the United States.

Joseph Jason Rotunda, Director of Compliance for the Texas State Securities Board, alleges that the yield program appears to be an investment contract and should be regulated as a security. According to the Howey’s testInvestments are labeled as securities when there is an expectation of earnings by management.

“These products appear similar to the yielding deposit accounts offered by Voyager Digital LTD et al., and the Enforcement Division is now investigating FTX Trading, FTX US and their directors, including Sam BankmanFried,” the filing reads later. .

Will FTX’s acquisition of Voyager Digital Asset be completed?

FTX exchange won the auction to acquire the assets of bankrupt digital asset lender Voyager Digital for $1.42 billion in September. The agreement will go to court for approval on October 19.

With the filings, however, Rotunda has opposed the acquisition until the Securities Commissioner can determine whether FTX US and all companies managed by Sam Bankman-Fried are in compliance with the law.

Rotunda authorized the Texas Attorney General’s Office to use the documents filed in the bankruptcy process to make the final decision.

What’s next for FTX?

There appear to be no long-term repercussions for FTX. a former banker, DeFiand Web3 advisor believe that SBF will pay the fine and return to normal.

Previously, the SEC fined lending platform BlockFi $100 million for an unregistered securities offering. The investigation against SBF is also based on similar motives. However, crypto youtuber Ben Armstrong believe that politics is at stake.

The impact on the price of the ITF

As seen on the 15-minute time frame, there was strong panic selling when news about the investigation broke. However, as the community realized it was just another investigation, the price quickly recovered to almost the same levels.

On a longer daily time frame, the candlesticks appear to form a double bottom pattern, with the neckline roughly around 25. If the Voyager takeover goes through, the price may rally and break out of this neckline.

FTX Token Price Plunges After Securities Regulator Investigation

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