would require digital asset exchanges to verify they have enough funds on reserve to pay customers when they ask for their money. The bill would also prohibit exchanges from commingling consumer funds with corporate assets.
In December, the U.S. Securities and Exchange Commission charged Samuel Bankman-Fried with orchestrating a scheme to defraud investors in his crypto trading platform FTX Trading Ltd. In reality, the 30-year-old crypto magnate was diverting FTX customer funds to his privately held crypto hedge fund Alameda Research and hiding it from investors, authorities say. Alameda Research also got special treatment from FTX, such as a virtually unlimited line of credit funded by FTX customers. FTX also used commingled customer funds at Alameda to make undisclosed venture investments, purchase real estate and make big political donations, according to the SEC.
In a press release, Capriglione said his office has been working on the bill for months with groups like the Texas Blockchain Council.