Digitex CEO Accused of Violating US Bank Secrecy Act

The US Attorney’s Office filed a lawsuit against Adam Colin Todd, CEO of the bitcoin exchange Digitex, for lacking an “adequate” AML/KYC program on the platform.

According to authorities, the accused “willfully caused Digitex Futures to violate the Bank Secrecy Act by failing to establish and implement an anti-money laundering system.”

Investigators allege that from January 2018 to April 2022, Todd operated the online futures trading firm Digitex Futures, which was not registered as a licensed broker. 

Furthermore, at one point, he publicly refused to implement KYC, the prosecution claims.

In July 2023, a US Federal Court ordered the cryptocurrency exchange Digitex Futures and its CEO to pay $15 million in fines following a lawsuit by the CFTC over fraud and unauthorized activities. 

The regulator stated that the company attempted to manipulate the price of the native DGTX token, illegally offered futures contracts, failed to register with the agency, and did not implement customer verification procedures. 

The FBI in Miami conducted the investigation of the current case. Prosecutors highlighted that if Todd is found guilty, he faces up to five years in federal prison. 

In 2020, a similar lawsuit from the CFTC was faced by the exchange BitMEX and its co-founders, including Arthur Hayes. The agency accused the company of operating an unregistered trading platform and violating KYC/AML procedures.

Additionally, the US Department of Justice charged BitMEX’s leadership with failing to comply with the Bank Secrecy Act.

In January 2024, the CFTC filed a lawsuit in the Arizona District Court against the digital asset platform Debiex over $2.3 million in fraud.