Digitex CEO Accused of Violating AML Laws and Operating Illegally
The CEO of Digitex crypto futures exchange, Adam Colin Todd, has been accused by the US Attorney’s Office for the Southern District of Florida of willfully failing to include an adequate anti-money laundering (AML) program. The court also alleged that Todd failed to establish, implement, and maintain know-your-customer (KYC) norms.
Previous Charges Against Todd
Todd had previously faced charges from the Commodity Futures Trading Commission (CFTC) for violating the Commodity Exchange Act (CEA). The court accused him of using various corporate entities to run an illegal crypto derivatives trading platform. In July 2023, Todd was ordered to pay almost $16 million to resolve these accusations.
Court’s Indictment Against Digitex
The indictment against Digitex stated that Todd sold unregistered futures contracts to customers between January 2018 and April 2022. The failure to implement AML rules is a direct violation of the Bank Secrecy Act. Prosecutors argued that the lack of KYC requirements allowed the company to facilitate criminal activities such as money laundering and sanctions evasion.
Potential Consequences for Todd
Todd made an initial appearance in court and, if convicted, faces up to five years in federal prison. The sentence will be determined by a federal district court judge after considering the U.S. Sentencing Guidelines.
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