CFTC sues crypto exchange Digitex and its CEO

According to the regulator, the exchange artificially inflated the price of DGTX to increase its capitalization

02.10.2022 - 06:30

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1 min

What’s new? The US Commodity Futures Trading Commission (CFTC) has filed a lawsuit against crypto futures exchange Digitex and its CEO Adam Todd. According to Cointelegraph, the regulator accuses the platform of lacking a license to trade, as well as manipulating the price of the native token DGTX. According to the CFTC, the exchange artificially inflated the price of its asset in order to increase its capitalization.

Cointelegraph’s material

More details about the case. The regulator also accused Digitex of violating KYC (know your customer) rules. Back in 2020, Adam Todd said that he would remove all identification procedures from the platform to protect the personal data of his customers.

In its lawsuit, the CTFC has asked the court for a complete ban on the exchange and its CEO to conduct transactions with digital assets that are considered commodities or securities within the regulator’s purview. In addition, the CTFC is going to impose penalties on Digitex and order the platform to reimburse money to the affected parties.

For now, Digitex’s website and marketplace are offline.

On August 4, the CFTC issued an order revoking the license and subsequently shutting down Predictlt, a political prediction betting platform. It must cease operations in the United States by February 15, 2023.

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