2023-07-13 09:27:00
The federal court has issued a judgment involving the digital asset exchange Digitex Futures and its founder and CEO, Adam Todd, ordering them to pay a fine of over $15 million following a US regulator said they had violates its handling and recording rules.
CFTC fines Digitex and its CEO $15 million for rule violations
In an announcement dated July 12the Commodity Futures Trading Commission (CFTC) reported that a U.S. District Court judge for the Southern District of Florida issued a default judgment once morest of Adam Todd, CEO of Digitexainsi que de Digitex LLC, Digitex Limited, Digitex Software Limited et Blockster Holdings Limited Corporation.
This judgment follows accusations non-registration with the CFTC and manipulation of the price of the DGTX token.
As a result of this court decision, the CEO and the four companies under his control are prohibit “trading on all markets regulated by the CFTC”. Additionally, they are required to pay restitution of $3,912,220, as well as a civil penalty of $11,736,660.
In a statement released Wednesday, CFTC Enforcement Division Director Ian McGinley said:
“This order once once more resolves a lawsuit brought once morest an individual and a digital asset exchange illegally offering futures contracts to US clients.”
The federal court decision requires the digital asset derivatives platform and a Florida resident to pay a sum exceeding $15 million for committing multiple violations of the law on the exchange of goods.
Accusations of price manipulation and financial consequences
According to McGinley, Adam Todd manipulated the price of the DGTX token using a computerized bot, which it deployed on third-party platforms in 2020 to buy more tokens than it sold. The CFTC filed a complaint once morest Todd and Digitex in September 2022.
Although the $15 million fine and additional financial penalties were imposed, this does not guarantee a refund to Digitex users. Returning funds to affected users can be a complex challenge in this context.
The CFTC has issued a warning to investors in its statement :
“The CFTC cautions that orders to pay funds to victims may not recover lost monies because violators may not have sufficient funds or assets,” she said. declared.
“The CFTC will continue to fight vigorously to protect customers and to hold violators accountable,” the agency added.
The CFTC, alongside la Securities and Exchange Commission (SEC) of the United States, is engaged in a series of civil lawsuits targeting cryptocurrency companies and their executives for non-compliance with the regulations in force. These cases include allegations once morest crypto exchange Binance as well as civil charges once morest former FTX CEO Sam Bankman-Fried.
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