Today in Crypto: Texas Probes Exchange FTX US Amid Securities Allegations; CFTC, SEC Investigate Three Arrows Capital

Cameron Winklevoss has stepped down as a director of Gemini’s European division, Coindesk wrote, citing an Oct. 12 filing with Companies House, a registry in the U.K.

In his place, Gillian Lynch, the Gemini head of Ireland and Europe, has been appointed to the board.

Winklevoss founded the crypto exchange with his twin brother in 2014.

The move goes along with Gemini getting virtual asset service provider registration in Ireland to provide crypto services there.

In addition, the Japanese government has approved a cabinet decision to change their laws to fight money laundering using crypto, Coindesk wrote.

The cabinet decision comes after a September Nikkei report saying the government was planning to change the Act on Prevention of Transfer of Criminal Proceeds to stop criminals from using crypto exchanges to launder money.

Japan has been trying to change the rules since last year. Local crypto exchanges have been fighting to limit the scope of the rules, citing compliance burdens and costs.

Meanwhile, Coinbase has given hints that it will sue around 1,000 users in the Republic of Georgia for reportedly taking advantage of a pricing glitch, Coindesk wrote.

The case stems from Aug. 29, when around 1,000 users took an “arbitrage opportunity” when the local lari currency was priced at $290 rather than $2.90 for around six hours on Coinbase.

Coinbase has said a “third party” caused the glitch, and a spokesperson said the amount of money it lost was “immaterial.” It also said those who return the improperly credited funds won’t be subjected to legal funds.

Finally, the Texas State Securities Board is looking into FTX US over allegations that it offers unregistered securities products through its yield-bearing service in the U.S., a court filing said.

TSSB Director of Enforcement Joseph Rotunda made the allegation in a filing to the bankruptcy court overseeing the possible sale of Voyager Digital’s assets to FTX.

He said FTX US could be violating state law governing the registration and sale of securities products as it’s offering a yield-bearing product to U.S. customers.