CFTC Sues Digitex Futures Exchange and CEO for Increased Crypto Price

The US Commodity Futures Trading Commission, or CFTC, has filed a lawsuit against Adam Todd, the founder, and CEO of Digitex LLC, for not registering the company’s crypto futures exchange and influencing the price of its DGTX token. Digitex Sued For Increased Prices Todd reportedly inflated the value of DGTX tokens to boost Digitex’s holdings, not to profit from each deal but by driving up the token’s price, which would increase the exchange’s holdings. In the lawsuit, Todd addressed the activities on live streams numerous times, according to a court document filed on September 30 in the Southern District of Florida. According to the US government, the Digitex CEO developed and operated an unauthorized trading platform for digital assets in breach of the Commodity Exchange Act by using various company organizations. The lawsuit stated, “Unless restrained and enjoined by this Court, defendants are likely to continue to engage in the acts and practices alleged in this complaint and similar acts and practices.” Use of KYC In Digitex Implementing a client information program and conducting Know Your Customer checks (KYC) are required under CFTC regulations. To safeguard user data, Todd stated in 2020 that he intended to eliminate all KYC requirements from Digitex. According to the lawsuit, the CFTC requested a court order preventing Todd and Digitex from transacting in digital asset transactions that are deemed commodities within ...