Reported by: Steve Kaaru

Digitex started operations in April 2020 after months of running its beta under which users could only purchase its native DGTX tokens. Just before it launched, it was hit by a data breach in which sensitive data for over 8,000 users was stolen and some of it leaked.

Following the breach, Digitex CEO Adam Todd removed all Know Your Customer (KYC) measures at the exchange, claiming they were unnecessary in the first place and only endangered users’ data. In a statement, he claimed that justifying KYC by claiming it would stop money laundering or terrorist financing is “stupid” and “ridiculous.”

According to the CFTC, not only has Todd breached commodities regulations, but he has also been engaging in market manipulation using various companies he owns. One of the strategies he used was deploying a bot that was “always buying more than it was selling.” He also filled large over-the-counter orders to purchase DGTX on third-party exchanges.

Read full report: https://coingeek.com/cftc-charges-digitex-exchange-and-ceo-who-called-kyc-programs-unreasonable/