Texas
Texas investigates celebrity endorsements of bankrupt crypto firm FTX
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Texas is investigating celebrities who had endorsed FTX, the now bankrupt cryptocurrency agency, for doubtlessly violating state securities legal guidelines.
The Texas State Securities Board began wanting into FTX’s operations final month over whether or not the change’s yield-bearing crypto accounts had been offering residents with unregistered securities. Because the firm’s collapse on Nov. 11, the board has considerably expanded its probe to look at the influence of this multibillion-dollar chapter.
And promotions of FTX by celebrities such because the Golden State Warriors’ Steph Curry and the Tampa Bay Buccaneers’ Tom Brady are actually a part of this broadened investigation, as first reported by Bloomberg Information and confirmed by The Texas Tribune.
It additionally comes amid a class-action lawsuit filed in Florida towards Curry, Brady and different celebrities — principally high-profile athletes — which alleges that FTX had used their endorsements as a part of a scheme designed to reap the benefits of “unsophisticated buyers.” It additionally names FTX’s former CEO Sam Bankman-Fried.
“Anybody who renders funding recommendation in Texas usually must be registered and so they usually should honestly disclose all recognized materials information,” mentioned Joe Rotunda, the state board’s enforcement director. “In Texas, there may be not a special system of justice or regulation for people who find themselves celebrities.”
It’s presently unclear if any distinguished Texan can be investigated, however Rotunda mentioned his workforce continues to be compiling an inventory of related events primarily based on latest courtroom filings by FTX’s present CEO John J. Ray III and the class-action lawsuit. Specifically, it will likely be what the promoters disclosed, how they had been compensated and the way their promotions had been scripted and filmed.
“It’s necessary from a securities regulation standpoint, and from a chapter standpoint, to find out the methods FTX was encouraging purchasers and Texans to make use of FTX and make investments with FTX,” he mentioned.
He added that his workforce will even have to think about how the related legislation applies on this scenario, because it was established through a 1985 case involving an funding and monetary publication being distributed through fax.
“That’s a far cry from social media and broadcast ads, not to mention tokens and blockchains, proper?” Rotunda mentioned.
Curry, Brady and FTX didn’t reply to the Tribune’s requests for remark.
They aren’t the primary celebrities to have been scrutinized or penalized for selling crypto. Final month, Kim Kardashian agreed to pay the Securities and Alternate Fee, the federal securities regulator, $1.26 million to settle allegations that she had hyped a crypto token on Instagram with out informing the general public that she obtained $250,000 for the put up.
Finally, Rotunda mentioned the scrutiny of movie star endorsement shouldn’t be his prime precedence, however the subject stays on his radar as his FTX inquiry continues. Past Texas, the crypto agency can also be going through quite a few different state, federal and worldwide investigations.
“Proper now, we’re making an attempt to determine how a $32 billion firm went to zero nearly in a single day,” he mentioned.
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8-year-old girl missing, father dead after car crash in Texas flood
Teacher killed, students hospitalized in crash at Texas school
A car accident at Excelled Montessori Plus left 5 children hospitalized and one teacher dead, according to Bexar County Sheriff Javier Salazar.
OKLAHOMA CITY — The search for an 8-year-old Oklahoma girl entered its third day on Thursday after her family’s vehicle got caught in a drainage ditch in Texas and was swept away by floodwaters on Christmas Eve.
Emergency personnel responded to a crash scene around 9:30 a.m. local time on Tuesday near U.S. Route 75 in Sherman, a city about 17 miles south of the Texas-Oklahoma border, according to the Sherman Police Department. Police said an SUV veered off the highway, got trapped in a drainage ditch and traveled down a nearby creek.
Six people were inside the vehicle at the time of the crash, according to police. Four family members were later rescued as authorities continued recovery efforts.
One body was recovered several hours later, police said. CBS News identified the person as the missing girl’s father, Will Robinson, who was a coach for the Durant High School Lady Lions basketball team in southern Oklahoma.
Texas Gov. Greg Abbott approved the dispatch of state search-and-rescue teams to assist with search efforts, according to police. Local and state personnel searched throughout most of the night on Tuesday to locate the missing girl, police said.
Search efforts resumed early Christmas Day as personnel expanded the search area outside of Sherman and into the “lower branches of Post Oak and Choctaw creeks,” according to police. By the afternoon, searchers had covered about seven miles of the creek in the area without success and police said they were shifting their “focus into the county, targeting some possible locations where we have not looked to as yet.”
Authorities resumed their search at 7 a.m. Thursday, but police noted that inclement weather may force them to pause the search.
“We will maintain observation posts at key areas throughout the inclement weather,” the Sherman Police Department said in a statement Thursday morning. “The active search will resume again the moment we are able to safely.”
Police also thanked the local community for their support but said no additional equipment, volunteers or other resources were needed in the search.
“We appreciate all the offers for assistance and are thankful for your concern and willingness to help,” the Sherman Police Department said. “There are dozens of search teams already deployed, who possess vast experience in these types of operations.”
Severe weather threatens parts of Texas
Tuesday’s accident comes amid a severe weather threat in parts of the state. The National Weather Service issued flash flood warnings for the Dallas-Fort Worth metro as thunderstorms move through the area.
“Thunderstorms continue pushing east and are now east of the US 75/I-45 corridor,” the weather service in Fort Worth warned Thursday afternoon. “Main threats with these storms continues to be small hail and heavy rain, but a tornado can’t be ruled out in the Tornado Watch area.”
The weather service also issued a tornado watch for the Houston metro area, which will until at least 7 p.m. Forecasters said in a Thursday morning forecast that the environment for tornadoes would be the most favorable around noon.
Abbott activated state emergency response resources on Thursday in anticipation of an increased severe weather threat across the eastern half of Texas. Citing the weather service, the governor’s office said in a statement that severe thunderstorms are expected to develop across portions of north, central, east, and southeast Texas beginning Thursday.
“Risks through the weekend include large hail, damaging winds, possible tornadoes, and heavy rainfall resulting in flash flooding,” the governor’s office said. “Minor river flooding is possible over the next several days, with the threat subsiding early next week.”
Contributing: Fernando Cervantes Jr., USA TODAY
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