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Digitex CEO Adam Todd’s Legal Issues
In a recent announcement by the U.S. Attorney’s Office for the Southern District of Florida, former Digitex CEO Adam Colin Todd pleaded guilty to willfully causing Digitex to violate the Bank Secrecy Act. This development comes after authorities indicted Todd in February.
Allegations Against Adam Todd
- Todd failed to include an adequate anti-money-laundering (AML) program at Digitex.
- He played an active role in operating an unregulated futures trading platform for U.S. customers from 2018 to 2022.
- Todd did not implement and maintain Know Your Customer (KYC) programs at Digitex.
Legal Consequences for Adam Todd
Todd’s guilty plea could lead to a potential sentence of up to five years in prison and a fine of $250,000. The sentencing will be determined by a federal district court judge, considering various factors.
Former Binance CEO Changpeng Zhao faced similar charges in a different federal district, pleading guilty in November 2023 and receiving a four-month prison sentence in April.
Additional Legal Actions Against Adam Todd
Following the indictment, Todd faced a default judgment issued by the Commodities Futures Trading Commission (CFTC) seven months earlier. The judgment included a permanent injunction against Todd and his companies, prohibiting them from certain activities.
Judge Roy Altman granted the injunction based on allegations of price manipulation of the platform’s native token, DGTX, using a computerized bot. The court’s order also required Todd to pay a significant disgorgement and civil monetary penalty, resolving the CFTC’s enforcement action against the entities.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
