The Commodities Futures Trading Commission has sued Adam Todd, the founder of crypto derivatives exchange Digitex, for allegedly running an illegal trading platform.
The CFTC says Digitex has “never been registered with the Commission in any capacity.” The regulator also said in its complaint, filed Friday in the Southern District of Florida, that the company lacked appropriate know-your-customer (KYC) procedures and a customer information program (CIP), both of which are meant to prevent money laundering.
The commission also alleges that Todd, who lives in Miami, tried to manipulate the price of the exchange’s native token, DGTX, by pumping it on third-party platforms.
A couple hours after the lawsuit was filed, DGTX fell 12% and was trading at zero, according to CoinGecko. At its all-time high, DGTX traded at $0.16 in October 2018. The token’s market capitalization reached an all-time high of $116,803,772 in April 2019.
According to CoinGecko, DGTX was trading on DeFi crypto...
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