Texas Department of Banking issues FTX consent order

More bad news for crypto company FTX, the dba moniker of West Realm Shires Services, Inc. On Dec. 5, Texas Banking Commissioner Charles Cooper issued a consent order after finding FTX violated the Texas Finance Code “by providing money transmission services while it was neither licensed by the Department nor excluded from licensure requirements under Chapter 151."

The department said FTX has agreed to the order and ceased unlicensed money transmission without admitting any violation of state or federal laws or regulations. The department previously issued an emergency order on Nov. 18 for FTX to cease and desist money transmission and advertising activities in Texas.

Bankruptcy declarations by FTX and BlockFi are the latest in the collapse of crypto brands costing investors billions of dollars. The House Financial Services Committee is set to hold hearings on the FTX fiasco next week. Unfortunately, current Chair Maxine Waters does not plan to subpoena FTX CEO Sam Bankman-Fried. TBA is continuing to follow these concerning events and will continue discussions with our members regarding common-sense regulation of digital assets. See the department’s press release here and view the consent order here.