CEO of Digitex accused of violating the US Banking Secrecy Act
The U.S. Attorney's office has filed a lawsuit against Adam Colin Todd, CEO of the Digitex bitcoin exchange, for the lack of an "adequate" AML/KYC program on the platform.
According to the authorities, the accused "intentionally forced Digitex Futures to violate the Banking Secrecy Act by failing to establish and implement an anti-money laundering system."
According to investigators, from January 2018 to April 2022, Todd ran an online futures trading firm, Digitex Futures, which was not registered as a licensed broker.
In addition, at some point he publicly refused to implement KYC, the prosecution claims.
In July 2023, the US Federal Court ordered the crypto exchange Digitex Futures and its CEO to pay $15 million as a fine in a CFTC lawsuit on fraud and activities without permission.
The regulator stated that the company tried to manipulate the price of the native DGTX token, illegally offered futures contracts, failed to register with the agency, and also did not implement customer verification procedures.
The Miami FBI was investigating the current case. If convicted, Todd faces up to five years in federal prison, prosecutors said.
Source: https://forklog.com/news/ceo-digitex-obvinili-v-narushenii-zakona-o-bankovskoj-tajne-ssha
