The legal troubles of Adam Colin Todd, the founder of Digitex Futures behind the altcoin DGTX, continue. It deepens, especially as he faces accusations of violating the Bank Secrecy Act (BSA). This development adds to the platform’s troubled environment, already marked by hefty fines and allegations of price manipulation. Here are the details…
That altcoin founder is in focus in the USA
On February 12, the U.S. Attorney’s Office for the Southern District of Florida announced Todd’s alleged failure to establish and implement the Anti-Money Laundering (AML) program for Digitex Futures between January 2018 and April 2022. According to the prosecution, this negligence made the platform vulnerable to money laundering. It also left it open to misuse by people involved in other illegal activities.
The BSA authorizes financial institutions to implement AML programs. Therefore, it plays a very important role in the fight against financial crimes. These programs require institutions to verify customer identities (KYC) and monitor transactions for suspicious activity. It also requires reporting suspicious transactions to FinCEN, the U.S. Treasury Department’s financial crimes enforcement unit.
This indictment adds to Todd’s existing legal problems. In July 2023, a US federal court fined him and Digitex Futures $16 million for operating an unregistered futures exchange and manipulating the price of the DGTX token. The decision also banned Todd and four affiliated companies from participating in CFTC-regulated markets and imposed additional fines.
DGTX price crashed
Legal ramifications for Todd and Digitex Futures are yet to be seen. However, the news negatively affected the DGTX token. As of February 14, 2024, there is a significant decrease in the price of the token:
- 24-hour sharp decline: Compared to yesterday, the price of the DGTX token has experienced a significant drop of -38.44%. It is currently hovering around 0.00003491 USD.
- Long term decline: Moving away reveals a worrying trend. Compared to the beginning of 2024, the token has lost a staggering 52.94% of its value.
- 100 percent below ATH: It is important to note that DGTX has a history of significant price fluctuations. It reached its all-time high (ATH) of $0.16 in October 2018. But despite this, the token cannot break past these levels. Because it is currently 99% below this peak.
Regulatory eyes on crypto space
This significant price decline, combined with recent regulatory developments, creates a compelling situation for DGTX investors. While some may view any upward movement as a positive sign, the overall bearish trend and underlying legal issues suggest uncertainty remains for the token. This case highlights the growing efforts of regulators to bring oversight to the cryptocurrency industry. It serves as a warning to other platforms operating outside regulatory frameworks and highlights the importance of adhering to established financial crime prevention measures.
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