Digitex Founder Being Sued by CFTC for Non-compliance

Digitex Founder Being Sued by CFTC for Non-compliance
  • A few hours after the lawsuit was filed, DGTX dropped 12% to a value of zero.
  • In October of 2018, DGTX hit a record high price of $0.16.

Digitex’s founder, Adam Todd, has been sued by the CFTC for allegedly operating an unlicensed exchange for crypto derivatives.

The CFTC claims that Digitex has “never been registered with the Commission in any capacity.” As part of its action against the corporation filed on Friday in the Southern District of Florida. The regulator also claimed that KYC processes and a customer information program (CIP) were inadequate.

Artificial Price Inflation

The commission also claims that Miami resident Todd pumped the exchange’s native token, DGTX, to other platforms. In an effort to artificially inflate its price.

CoinGecko reports that only a few hours after the lawsuit was filed, DGTX dropped 12% to a value of zero. In October of 2018, DGTX hit a record high price of $0.16. In April of this year, the token’s market cap hit a record high of $116,803,772.

DGTX was reportedly being traded on the DeFi cryptocurrency market Uniswap. And the India-based cryptocurrency trading platform CoinDCX, as indexed by CoinGecko.

The CFTC this Friday settled charges against the founders of bZerox and the bZx protocol for $250,000, citing “illegally offered leveraged and margin retail commodity transactions in digital assets.” Ooki DAO, which assumed administration of the bZx protocol in August 2021, was also hit with similar accusations by the CFTC.

CFTC Chairman Rostin Behnam, meantime, has made no secret of his opinion that Bitcoin would improve under the watchful eye of the commission. On Thursday, he predicted that Bitcoin’s value would “double” if it were traded in a CFTC-regulated market, arguing that the absence of such a market is the main reason many institutional investors have avoided including Bitcoin in their portfolios.

Recommended For You:

CFTC Commissioner Calls Ethereum a Commodity Even With PoS

A trader himself, Rossi has 7 years of experience trading in the forex market and the passion for writing has brought him to Newscrypto. He is the perfect combination of market knowledge and writing skills, making him one of the most sought-after writers on cryptocurrency.