US Commodity Futures Trading Commission (CFTC) Sues This Cryptocurrency Exchange!

US Commodity Futures Trading Commission (CFTC), cryptocurrency sued futures exchange Digitex LLC and its founder and CEO, Adam Todd, for failing to register with the agency and attempting to manipulate token prices.

CFTC Claims Cryptocurrency Exchange Digitex Is Price Manipulating Its Token

According to the documents, Digitex Futures met the definition of designated contract market or foreign trading board, but never sought to enroll in commission as a futures commission trader, which is a required license under the CFTC.

The lawsuit also alleges that Digitex failed to comply with Bank Secrecy Act requirements, including implementing active know-your-customer checks (KYC) and a customer information program.

The lawsuit also states that Todd’s local cryptocurrency exchange altcoin of DGTX It is alleged that he is trying to manipulate the price.

The CFTC alleges that Todd manipulated the price of DGTX by buying tokens not to monetize individual transactions, but to pump the token price to inflate the exchange’s holdings. The complaint refers to several times Todd discussed these actions on live broadcasts.

“Unless this is restricted and ordered by the Court, the defendants are likely to continue the acts and practices alleged in this petition and other similar acts and practices,” the petition said.

The CFTC is seeking a court order banning cryptocurrency exchange Digitex and Todd from continuing their operations. The CFTC also requests that Digitex and Todd stop trading on registered exchanges, engaging in transactions involving “commodity interests” and digital assets considered commodities, or soliciting or accepting funds to buy or sell commodities.

The institution also wants the firm to return its profits and return other earnings, pay full compensation and pay judicial fines to be determined.

*Not investment advice.