The Commodity Futures Trading Commission, in its push to further regulate the emerging cryptocurrency space, has charged Miami, Florida resident Adam Todd and four companies he controlled Monday for allegedly operating digital asset exchange Digitex Futures illicitly.
Specifically, the CFTC alleged that Todd and Digitex Futures illegally offered futures transactions, failed to register, and also attempted to manipulate the price of the Digitex Futures native token, it said in a release, citing a complaint in the U.S. District Court for the Southern District of Florida.
The commodities watchdog said it now “seeks fell restitution, disgorgement of ill-gotten gains, civil monetary penalties, permanent trading and registration bans, and a permanent injunction against further violations of the Commodity Exchange Act.”
The complaint accused Todd and Digitex Futures of operating a digital asset derivatives exchange from a Florida-based office from approximately May 2020 through May 2022.
Digitex tokens’ market cap stood at only $22,246 at the time of writing, rising 1.7% to $0.00002389, according to data from CoinMarketCap.
The news move comes as the government agency aims to bolster its crypto oversight as the industry grows in popularity. It recently launched a new technology innovation arm as “we are past the incubator stage, and digital assets and decentralized financial technologies have outgrown their sandboxes,” said Rostin Behnam, chairman of the CFTC.
Earlier, Kim Kardashian to pay $1.26M over Instagram post touting crypto, SEC says.