April 19, 2024
Policy & Regulation

CEO of Digitex Futures Exchange Charged with Violating Bank Secrecy Act

In a recent development, Adam Todd, the founder and CEO of Digitex Futures Exchange, is facing charges for violating the Bank Secrecy Act (BSA) by failing to establish and implement an Anti-Money Laundering (AML) program. The charges were announced by the U.S. Attorney’s Office for the Southern District of Florida on February 12, following an investigation conducted by the Federal Bureau of Investigation (FBI) Miami.

The prosecution alleges that Todd operated an unregistered futures platform from January 2018 to April 2022, during which he willfully neglected to set up an adequate AML program, leaving the platform susceptible to abuse for money laundering and other illicit activities. Assistant U.S. Attorney Trevor Jones is leading the case, emphasizing the importance of AML programs in BSA compliance.

According to the U.S. Attorney, Todd not only failed to establish an AML program but also publicly refused to implement Know Your Customer (KYC) policies for Digitex Futures. Todd has made an initial court appearance, and if found guilty, he could face a maximum jail term of five years.

This indictment follows a previous legal action seven months ago when a U.S. federal court ordered Todd to pay $16 million for failing to register the futures exchange with the U.S. Commodity Futures Trading Commission (CFTC). The CFTC had also accused Digitex of manipulating the price of its native DGTX token. As part of the judgment, Todd and his associated companies were banned from trading in any CFTC-regulated markets and required to pay almost $4 million in disgorgement and an almost $12 million civil monetary penalty.

The charges against Todd underscore the ongoing regulatory scrutiny on cryptocurrency exchanges and their compliance with financial regulations, particularly in the realm of preventing money laundering and ensuring the integrity of financial systems.

Image by Freepik

Related posts

Ben ‘Bitboy’ Armstrong’s Emergency Injunction Motion Denied by Georgia Court Amid Ongoing Legal Battle

Cheryl  Lee

FTX Co-Founder Gary Wang Testifies: Allegations of Wire Fraud Involving SBF’s Inner Circle

Bran Lopez

Public Consultation Launched in the UK to Evaluate Proposed Ban on Cold Calls Based on Crypto

Eva Moore

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More