CEO of Digitex Futures Exchange Charged with Violating Bank Secrecy Act
The United States Attorney’s Office for the Southern District of Florida has filed charges against Adam Todd, the founder and CEO of Digitex Futures Exchange, accusing him of intentionally causing his company to violate the Bank Secrecy Act. According to official sources, Todd operated Digitex as an unregistered crypto futures trading platform from January 2018 to April 2022.
Todd Indicted for Violation of Bank Secrecy Act
The indictment alleges that Todd knowingly failed to implement sufficient anti-money laundering (AML) and know-your-customer (KYC) programs on Digitex, while offering futures contracts to customers. He also publicly stated his refusal to establish KYC policies for the platform.
The 50-year-old CEO, formerly based in Miami, has appeared in court and will face sentencing if found guilty. If convicted, Todd could be sentenced to up to five years in federal prison.
Todd’s Previous Encounter with CFTC
Todd’s indictment comes after the Commodities Futures Trading Commission (CFTC) issued a default judgment against him seven months ago. The judgment was related to various offenses, including attempting to manipulate the price of Digitex’s native token using a computerized bot.
The court order barred Todd and his companies from registering with the CFTC and participating in any CFTC-regulated markets. Additionally, Todd was ordered to pay a $3.9 million disgorgement and an $11.7 million civil monetary penalty.
By
By
By
By