On Friday, the Commodities Futures Trading Commission went after crypto exchange Digitex and its founder Adam Todd in a lawsuit, claiming that it has “never been registered with the Commission in any capacity.”
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The move saw the price of DGTX slide by 12%, with the coin now trading at zero, after the CFTC alleged the company was operating illegally and accused the founder of price manipulation of Digitex's native token.
The CFTC has been aggressively cracking down on industry players through a “regulation by enforcement" method that has drawn ire from some who would prefer clear, transparent rules around crypto.
Recently, the CFTC also made a $250,000 settlement against the creators behind bZerox and bZx, better known as the Ooki Protocol, for illegally making available to customers transactions for leveraged and margined retail commodities in cryptocurrencies, and choosing not to implement anti-money laundering protocols like customer identification mechanisms. On top of this, the regulatory body also criticized the companies for conduct only permitted by registered futures commission merchants (FCM).