After several debates surrounding the fall of FTX, the former CEO must now face a hearing instituted by Texas regulators. Between his problems with investors and the anger of the citizens of the Bahamas, Sam Bankman-Fried must answer for his actions and define what is his part in the collapse of his exchange.
Texas regulators formally summon Sam Bankman-Fried
The fall of FTX is a worldwide phenomenon. Known as one of the largest cryptocurrency exchange platforms, Sam Bankman-Fried’s company went bankrupt overnight. Adding to all the problems it has had so far is the summoning of Texas regulators.
Indeed, the Texas State Securities Board (TSSB) officially orders the disgraced billionaire to appear at a hearing on February 2. According to the TSSB, SBF must answer for its part in the fall of its exchange. Additionally, he accuses the founder and FTX of specific securities violations.
According to a coindesk report, the TSSB investigation was made public in October and Sam Bankman-Fried received a notice suggesting he participate in the hearing via Zoom. The notice of hearing, dated Nov. 22, stated that the exchange should return the investors’ funds to bankruptcy. The TSSB estimates that many Texans have used the platform to buy and sell publicly traded stocks.
The former CEO of FTX must now fight on all fronts. In December, he must appear before a crucial hearing in addition to that of Texas regulators. Faced with the surge caused by the collapse of FTX, Texas regulators are forced to initiate this last resort.
The crisis that the platform is currently going through is one of the biggest and most publicized in existence. Unlike all those that have occurred in the crypto market, this one has a particular impact. Sam bankman-fried’s company was considered one of the most trusted in the cryptocurrency ecosystem. As a result, the current bankruptcy sows doubt among investors. Additionally, accusations of financial disaster and misuse of client funds are not helping the digital asset giant.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
