The United States Attorney’s Office for the Southern District of Florida has unveiled charges against Adam Todd, the founder and CEO of crypto futures trading platform Digitex Futures Exchange, alleging that he intentionally caused his company to violate the Bank Secrecy Act.

According to an official announcement, Todd illegally operated Digitex as an unregistered crypto futures trading from January 2018 through April 2022.

Digitex CEO Indicted for Violation of Bank Secrecy Act

Per the indictment, Todd willfully failed to implement adequate anti-money laundering (AML) and know-your-customer (KYC) programs on Digitex as he offered futures contracts to the platform’s customers. In addition, he allegedly publicly revealed his refusal to establish KYC policies for Digitex.

Formerly a resident of Miami, the 50-year-old CEO has made his first appearance in the District Court for the Southern District of Florida and will soon be sentenced if found guilty.

“If convicted, Todd faces up to five years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines along with other mitigating, aggravating, and statutory factors,” the statement read.

Todd Faced CFTC Last Year

Todd’s indictment comes seven months after the Commodities Futures Trading Commission (CFTC) announced a default judgment issued against the Digitex CEO for a range of offenses.

In July 2023, Judge Roy Altman of the U.S. District Court for the Southern District of Florida granted a permanent injunction against Todd and four companies he controlled, including Digitex Futures Exchange, for their attempt to manipulate the price of the platform’s native token, DGTX, using a computerized bot.

Among the charges brought against Todd and his companies were allegations of illegally offering futures transactions on a platform different from the designated contract market, failure to register with the CFTC, and failure to implement a customer information program, KYC, and AML procedures.

The court’s order banned Todd and his firms from registering with the CFTC and trading in any CFTC-regulated markets. The judge further imposed a $3.9 million disgorgement and an $11.7 million civil monetary penalty on the Digitex CEO, resolving the CFTC’s enforcement action against the entities.

The post US Government Charges Digitex Futures Exchange CEO With Bank Secrecy Act Violation appeared first on CryptoPotato.

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Filed under: Bitcoin - @ February 19, 2024 5:11 am