Crypto exchange Digitex and CEO sued by CFTC for manipulating DGTX price and failing registration

The Commodity Futures Trading Commission (CFTC) is tightening its grasp on the crypto market. Not too long after the bZeroX incident, the regulatory body is now behind the cryptocurrency exchange Digitex and its CEO Adam Todd.

Digitex gets CFTC’d

As per the court filings in the Southern District of California on September 30, the CFTC sued both the exchange and its CEO for various reasons. Firstly, the exchange had been operating without registering with the CFTC.

CEO Todd was alleged to have been operating an illegal digital asset derivatives trading program. In addition to this, Todd was also responsible for the manipulation of the crypto exchange’s native token, DGTX.

According to the CFTC, the price was being pumped in order to increase the total holdings of the company.

Furthermore, the complaint also included Digitex’s lack of appropriate KYC (Know your Customer) procedures, as well as the failure to establish a customer information program.

With Digitex expected to incur civil monetary penalties and restitute the affected individuals, the CFTC tightened its noose. The regulatory body appealed to the court to block Todd and Digitex from engaging in digital asset transactions considered commodities, according to the CFTC.

CFTC is on a roll!

Less than a week ago, CFTC fined bZeroX, LLC, $250,000 for the illegal offering of leveraged and margined commodity transactions. However, the regulatory body did not stop there as it made the first of its kind filing against bZeroX’s successor Ooki DAO.

bZeroX LLC was also charged for engaging in activities that only futures commission merchants can perform as well as for the lack of adopting a customer identification program.

Thus, CFTC is looking in all directions to find one fault and bring other crypto companies into its crosshairs.