Texas authorities are investigating alleged securities breaches at the cryptocurrency exchange FTX FTX/USDhis FTX US business and founder and CEO Sam Bankman Fried, according to state registration.

Authorities are considering whether the income-producing accounts offered by FTX US should be considered unregistered securities, as stated in a document related to Voyagers bankruptcy proceedings.

The bid to buy the company’s assets was recently won by FTX.

“As explained more fully in this statement, I am aware that FTX Trading, together with West Realm Shires Services Inc. dba FTX US may offer unregistered securities in the form of high income accounts to residents of the United States,” Texas State Securities Board (TSSB) Director of Enforcement Joseph Rotunda wrote.

FTX products similar to Voyager Digital

“These products appear to be similar to those developed by Voyager Digital LTD et al.

Rotunda further said he downloaded the FTX software to his phone, set up an account, and then transferred funds to that new account using both a bank transaction and an Ethereum transaction.

Furthermore, despite the company’s terms and conditions that FTX will not provide services to US citizens, the app claimed that it qualifies for a high-yield account.

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FTX Return Accounts offer up to 8% APY on the first $10,000 transferred

“Despite the fact that I identified myself by name and address, the FTX trading app now shows that I am earning returns on ETH. The yield is priced at 8% APR,” he wrote.

He said it appears to be an investment treaty that would count as collateral in Texas.

The state did not register FTX US’ yield program.

In a statement shared with multiple outlets, an FTX spokeswoman claimed that the company…