CFTC Orders Digitex Founder To Pay $16 mn
Adam Todd, the founder of Digitex, has been ordered by a federal court to pay nearly $16 million to resolve accusations of illegal platform operations and manipulation of its native token, DGTX. The U.S. Commodity Futures Trading Commission (CFTC) found Todd violated several commodities laws while running Digitex Futures exchange in Florida. The judge ordered him banned from trading in CFTC-regulated markets and ordered a $12 million fine and $4 million disgorgement. It remains unclear whether Todd or the company will have the resources to repay customers.
The CFTC has ordered an action against an individual and digital asset exchange for illegally offering futures contracts to U.S. customers. The court found Todd had attempted to manipulate Digitex’s native utility token, DGTX, by allegedly ‘pumping’ the token’s price using a computerized bot.
Todd, the developer of Digitex Games, claimed the company failed to compete in a saturated market and tried to keep out U.S. customers. Todd has rebranded the company as Digitex Games, a decentralized betting and trading platform using the DGTX token. The platform will be fully on-chain, with no perceived jurisdiction over its operations by the CFTC.
(With inputs from Shikha Singh)
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