CFTC accuses Digitex founder of creating illegal crypto derivatives platform

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The Commodity Futures Trading Commission (CFTC) filed a lawsuit against the head of Digitex in the US courts, accusing him of creating an illegal crypto derivatives platform.

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Digitex founder Adam Todd failed to register the service as a futures trading platform, according to a lawsuit filed by the CFTC in the Florida Southern District Court.

The CFTC alleges that the defendant used several unregistered entities to provide services, including Digitex, Digitex Software, Digitex, and Blockster Holdings, in violation of the Commodity Exchange Act (CEA).

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Law firm Willkie Farr & Gallagher lawyer Michael Selig said this is the regulator’s first legal challenge against a DeFi platform for failing to register as an exchange.

Earlier, the CFTC announced its intention to defend in Congress its position that crypto assets are inherently a commodity that falls under the jurisdiction of the agency.

Source: Bits

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