Share this article
CFTC Charges Digitex Founder Adam Todd With Running Illegal Crypto Derivatives Trading Platform
The regulator said Todd failed to register his service as a futures trading platform with the agency.
Updated May 11, 2023, 6:17 p.m. Published Sep 30, 2022, 5:14 p.m.
Make us preferred on Google
Adam Todd, founder of crypto futures and spot market exchange Digitex, has been charged by the Commodity Futures Trading Commission for multiple violations of the Commodity Exchange Act (CEA).
According to a complaint filed in the Southern District of Florida on Friday, Todd is accused of using various corporate entities – including Digitex LLC, Digitex Ltd., Digitex Software Ltd. and Blockster Holdings Ltd. Corp., – to run an illegal crypto derivatives trading platform.
STORY CONTINUES BELOW
The CFTC’s enforcement action against Todd is one in a recent string of crypto-related lawsuits brought by the agency, which appears to be cracking down on lawbreakers in the digital-assets industry.
Read more: CFTC’s Ooki DAO Action Shatters Illusion of a Regulator-Proof Protocol
Michael Selig, a crypto attorney at the law firm of Willkie Farr & Gallagher, said that while the CFTC’s action against Todd and Digitex is the regulator’s first against a decentralized-finance (DeFi) platform for failing to register as an exchange, it’s not a surprise to anyone paying attention to what the regulator has been saying about DeFi platforms.
“Former CFTC Commissioner Dan Berkovitz foreshadowed this action in a June 2021 speech where he stated that ‘not only do I think that unlicensed DeFi markets for derivative instruments are a bad idea, I also do not see how they are legal under the CEA,;'” Selig said. “The Digitex action demonstrates that the CFTC is focused on both intermediaries that offer margin and financing to retail crypto-asset traders as well as the platforms.”
Because Todd and the Digitex platforms were never registered with the CFTC as futures commission merchants, the operation was a violation of the CEA, according to the complaint. Todd and the entities are further accused of failing to implement proper know-your-customer practices as required by the Bank Secrecy Act – a violation that can land rulebreakers in prison for up to five years.
Todd is also accused by the CFTC of attempting to manipulate Digitex’s native token, DGTX, using noneconomic trading to “pump” its price higher.
The CFTC is seeking civil monetary penalties, disgorgement, restitution, and trading and registration bans against Todd and the Digitex-related entities.
Sizin için daha fazlası
KuCoin Hits Record Market Share as 2025 Volumes Outpace Crypto Market
Tarafından sipariş edildiKuCoin
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
Bilinmesi gerekenler:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Market structure bill delay seen capping U.S. crypto valuations, Benchmark says
Failure to pass market structure legislation this year wouldn’t derail U.S. crypto, but it would prolong regulatory ambiguity, favoring bitcoin and infrastructure.
What to know:
- A lack of market structure legislation keeps a regulatory risk premium in U.S. crypto, limiting valuation expansion, said Benchmark analyst Mark Palmer.
- Bitcoin and infrastructure are best positioned; exchanges, DeFi and altcoins are expected to lag.
- Palmer still sees passage as more likely than not, though timing risk is rising.
Top Stories
