Digitex Crypto Exchange Sued By CFTC For DGTX Price Manipulation
It seems that the CFTC is now tightening its hold over the crypto market and is taking a closer look at different affairs. The new focus of the CFTC is the crypto exchange Digitex and its CEO for potential price manipulation of DGTX.
On September 30, a case was filed in California's southern district court in which the CFTC is suing the crypto exchange and the CEO. Among the various reasons, one of the important ones is that the exchange failed to register with the Commodity Futures Trading Commission.
Todd (CEO of Digitex) was accused of running a digital assets trading platform that was illegal and not registered with the relevant bodies. Another allegation is the manipulation of DGTX, which is the native token of the crypto exchange.
DGTX Price Was Pumped Illegally
The alleged pumping of the DGTX token price resulted in an increase in the company's total holdings! The company is also facing charges that its KYC procedures were not up to the standards. Furthermore, the case also states that Digitex didn't establish a proper information program for the customers.
Experts believe that the regulatory body CFTC will attempt to block Digitex and Todd (CEO) from any engagement in the commodities and digital asset transactions. This could also lead to monetary penalties if it is proven in a court of law!
bZeroX Was Also Fined By CFTC
Earlier, bZeroX (a digital trading firm) was also fined by the CFTC for its illegal offering of margined digital assets trading. The total fine imposed on the firm was around $250,000, which is a huge fine and shows that the CFTC is now serious about the regulation of crypto in the country.
The company was also charged for allowing activities that are only acceptable for future commission merchants. On top of that, the KYC program adopted by the bZeroX was also inadequate!
Both of these cases in a short span of time mean that we will get to see more regulation of the crypto space in weeks and months to come!