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Thursday, December 1, 2022

Legal Action Taken Against Digitex And Its CEO

The Crypto market is criticizing the regulators SEC and CFTC for taking legal action approach to the cryptocurrency market in the U.S

Digitex LLC Taken To Court

CFTC or The United States Commodity Futures Trading Commission filed a legal complaint against limited liability Company DIGITEX and  CEO and founder A. Todd for not complying with the regulations of not registering the cryptocurrency futures Exchange and manipulating the price of token DGTX.

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As per the recent filing in the Florida court located in its Southern District, it was found that Adam Todd allegedly inflated the DGTX Tokens price to inflate Digitex’s holding. The regulators made the claims that Adam Todd used separate corporate platforms to initiate and operate an illegally assets derivative trading platform as part of his plan, which is in contravention of the Commodity Exchange Act of the US

Commodity Futures Trading Commission rules demand the performing of the Know-Your-Customer protocol and the implementation of a customer-related information system. Adam, CEO of Digitex stated that in the year 2020 he intended to do away with all KYC processes to ensure better protection of users’ data.

CFTC in its complaint asked for an order from the court to block and restrain Adam Todd CEO Of Digitex LCC from participating in digital asset transactions. Additionally, the regulators asked for monetary compensation for disgorgement, restitution, and monetary penalties civil in nature to all parties affected by Adams’s intentions. The website of both Digitex LLC and TradingFutures were offline at the time of publishing this News.

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The market has been very critical of CFTC and Securities and Exchange Commission for their Legal action approach. SEC is in a legal battle with Ripple as of now.

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