The US Commodity Futures Trading Commission (CTFC) has charged crypto futures exchange Digitex and its founder and CEO Adam Todd for multiple violations associated with the Commodity Exchange Act (CEA).
According to the regulator’s filing, as seen on Friday in the Southern District of Florida, the CTFC’s complaint accused Todd of using various corporate entities – including Digitex LLC, Digitex Ltd., Digitex Software Ltd., and Blockster Holdings Ltd. Corp., – to run an illegal crypto derivatives trading platform.
As per the watchdog, Digitex Futures exchange met the definition of the designated contract market or foreign board of trade, but never registered with the CTFC as a futures commission merchant, and therefore violated the CEA.
The CTFC accused Todd and the entities of failing to implement proper know-your-customer checks and a customer information program as required by the Bank Secrecy Act – a violation that can land lawbreakers in jail for up to five years.
The CTFC...
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