Former Digitex Futures Exchange CEO Pleads Guilty to Violating Bank Secrecy Act

Former CEO of Digitex Futures Exchange, Adam Todd, has pleaded guilty to violating the Bank Secrecy Act by failing to establish an Anti-Money Laundering program. Todd’s plea was made in a federal court in the Southern District of Florida. He was indicted earlier this year for overseeing an unregistered futures platform that targeted US customers from 2018 to 2022 and neglected crucial AML and Know Your Customer protocols. In 2020, Todd announced that there would be no KYC requirements following a data breach at Digitex. The US Commodity Futures Trading Commission filed a lawsuit against Todd and Digitex in 2022, resulting in a $16 million order for disgorgement and penalties. Todd could face up to five years in prison and a $250,000 fine. This case adds to the legal challenges faced by crypto exchanges, including FTX and Binance.