CFTC fines bitcoin exchange Digitex $15 million


U.S. Federal Court Orders Crypto Exchange Digitex Futures and Its CEO Adam Todd to Pay $15M in Fines in Lawsuit CFTC about fraud and activities without a license.

According to the regulator, the company tried to manipulate the price of the native DGTX token, illegally offered futures contracts, failed to register with the agency, and also failed to implement procedures KYC/AML.

According to Enforcement Director Ian McGinley, Todd allegedly “pumped” the coin using a computerized bot.

“From May to August 2020, Digitex Futures required users to deposit DGTX into their futures exchange margin trading accounts. All summer, when the exchange was preparing to launch, Todd repeatedly tried, according to him, to pump up the price of the token, as reported by third-party exchanges, ”the head of the CFTC explained.

The court also ordered a ban on Digitex and related organizations.

The CFTC has warned that orders requiring payments to victims are likely to be under-enforced as perpetrators may not have the funds or assets to repay.

Recall that in April 2023, the court appointed Hydrogen Technology Corp. $2.8 million fine in lawsuit SEC about manipulating the price of a token.

In March, the regulator secured a positive verdict on charges against John and Jonathina Barksdale for their creation of the Ormenus Coin scam. They will pay $102 million.

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