Adam Todd has pleaded guilty to failing to establish an Anti-Money Laundering (AML) program, a requirement under the Bank Secrecy Act.

This plea was made in the federal court of the Southern District of Florida, as communicated by the U.S. Attorney’s Office on May 7. Todd is charged with allowing Digitex to offer an unregistered futures trading platform to U.S. customers from 2018 to 2022 without implementing AML and Know Your Customer (KYC) protocols. 

Legal Consequences and Charges

According to the U.S. Attorney’s Office, Todd might face five years in prison or a fine of $250,000. However, his sentencing date has yet to be disclosed.

In April, Changpeng Zhao, the former CEO of Binance, was also convicted of the same offenses and sentenced to four months in prison. 

Adam Todd left his position as CEO of Digitex in October 2022 and has worked in the sector as the chief developer for Digitex Games since Feb 2023. In 2020, after a huge data leakage at Digitex that uncovered confidential user data, Todd declared the discontinuation of all KYC checks. This choice was made in spite of the platform’s earlier assertions that U.S. IPs were blocked and that users would have to confirm that they were not located in the United States. 

Apart from the criminal charges, Todd and Digitex faced civil litigation by the U.S. Commodity Futures Trading Commission (CFTC). In 2022, the CFTC filed a lawsuit against Todd and Digitex, and in 2023, a court ruling was made against them, ordering them to pay $16 million in penalties and disgorgement for failing to comply with U.S. laws. 

Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0

PRC Comment Policy

Your comments MUST BE constructive with vivid and clear suggestion relating to the post.

Your comments MUST NOT be less than 5 words.

Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.

Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.

Constructive REPLY to comments is allowed