The creator and CEO of the cryptocurrency futures exchange Digitex LLC, Adam Todd, is being sued by the Commodity Futures Trading Commission (CFTC) for failing to register with the organization and attempting to influence the price of their token.
Despite fitting the CFTC‘s criteria of a designated contract market or foreign board of trade, Digitex Futures never applied to get registered as a futures commission merchant with the commission. Additionally, according to the complaint, Digitex failed to execute efficient know-your-customer checks and a customer information program, as well as other obligations of the Bank Secrecy Act.
Todd allegedly tried to influence the price of DGTX, the native token of the exchange, according to the lawsuit. According to the CFTC, Todd reportedly manipulated the price of DGTX by purchasing large quantities of the token, not with the objective of profiting from individual trades but rather to increase the exchange’s holdings by driving up the token’s price. Numerous instances where Todd addressed the activities on livestreams are cited in the lawsuit.
“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” said the complaint.
The CFTC is requesting a court injunction preventing Todd and Digitex from conducting further business.
Dealing in “commodity interests” and digital assets that are regarded as commodities, and soliciting or accepting money for the purpose of buying or selling commodities. The agency also wants the company to make full restitution, pay yet-to-be-determined civil monetary penalties, repay earnings, and disgorge other gains.
A tweet from what appears to be the company’s official account teases the release of Digitex 2.0 on April 29. The website of the business appears to be inactive.
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