Digitex Futures Exchange CEO Faces Federal Charges
Adam Colin Todd, the CEO of Digitex Futures Exchange (DGTX), is facing federal charges for alleged compliance failures, including violating the Bank Secrecy Act, according to an announcement by the US Department of Justice (DOJ).
The charges stem from Todd’s purported failure to establish and implement an anti-money laundering (AML) program at Digitex Futures.
The Allegations Against Todd
The indictment alleges that from January 2018 to April 2022, Todd operated Digitex Futures as an unregistered futures commission merchant in the United States. The US federal agency claims that Todd neglected to establish an adequate anti-money laundering program and a robust know-your-customer (KYC) program, despite publicly refusing to implement KYC policies for the exchange.
Potential Consequences
Todd has made his initial appearance in federal court and, if convicted, could face up to five years in federal prison. The final sentence will be determined by a federal district court judge, taking into account various factors.
Previous Legal Action
Todd has previously faced legal action by the United States Commodity Futures Trading Commission (CFTC), resulting in a default judgment. The CFTC’s judgment ordered Todd to pay approximately $16 million in disgorgement and penalties. The CFTC accused Todd and his companies of attempting to manipulate the price of DGTX through various means, including using a computerized bot to inflate the token’s price and conducting over-the-counter orders.
Impact on DGTX Token
As a result of these compliance issues and legal actions, DGTX’s market performance has been significantly affected. Currently trading at $0.00003467, the token has experienced a substantial decrease of over 26% within 24 hours. Investors in DGTX have faced significant price volatility in recent months.
Source: US Department of Justice, CFTC, CoinMarketCap
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