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CFTC Files Lawsuit Against Digitex Futures Exchange

According to a Sept. 30 court filing in the Southern District of Florida, Todd reportedly inflated the price of DGTX tokens in an attempt to boost Digitex's holdings.


01 Oct 2022 By : COIN GABBAR
CFTC Files Lawsuit A

The Commodity Futures Trading Commission (CFTC) of the United States filed a lawsuit against Digitex LLC and its founder and CEO Adam Todd. The CEO was sued for failing to register the cryptocurrency futures exchange and for manipulating the price of its DGTX token.

According to a Sept. 30 court filing in the Southern District of Florida, Todd reportedly inflated the price of DGTX tokens in an attempt to boost Digitex's holdings. In accordance with the Commodity Exchange Act, the Digitex CEO employed different corporate entities as part of a conspiracy to create and operate an unlawful digital asset derivatives trading platform.

The CFTC mandates Know Your Customer checks and the implementation of a customer information program. Todd stated in 2020 that he intended to eliminate all KYC procedures at Digitex in order to protect customer data.

According to the lawsuit, the CFTC sought a court order banning Todd and Digitex from engaging in digital asset transactions considered. Furthermore, the regulator intended for Digitex to pay civil monetary penalties, disgorgement, and restitution to those who had been affected. At the time of writing, both Digitex's and its futures websites were offline.

COINGABBAR VIEWS: Many in the crypto space have criticized authorities in the United States, especially the CFTC and the SEC for taking a "regulation by enforcement" approach to crypto. While the SEC is currently investigating Ripple over whether the company's XRP sales violated securities laws, CFTC commissioner Caroline Pham met with Ripple CEO Brad Garlinghouse in September as part of a "learning tour" on crypto and blockchain.

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