Adam Todd, the founder and CEO of Digitex Futures Exchange has been charged for violating the laws of the Bank Secrecy Act (BSA). Todd has failed to establish and implement an Anti-Money Laundering (AML) program.
The BSA plays a crucial role in fighting financial crimes, like money laundering and terrorism financing. As such, for any institution to adhere to BSA regulations, implementing an Anti-Money Laundering program is essential.
Legal Challenges
The charges against Adam Todd were quickly made public on February 12 by the U.S. Attorney’s Office for the Southern District of Florida. According to the complaint, Todd faces allegations of operating from January 2018 – April 2022 without the necessary registration as a futures commission merchant in the US.
“Todd sold and offered futures contracts to Digitex Futures’ customers. He willfully failed to establish, implement, and maintain an adequate anti-money-laundering program, including an adequate know-your-customer (KYC) program.” FBI Miami alleged.
Todd reportedly took a public stance against implementing KYC measures for users of Digitex Futures. This decision has led to his appearance in federal court. Should he be found guilty, Todd could be sentenced to up to five years in federal prison, with the final judgment resting in the hands of a federal judge who will consider the applicable legal framework and relevant circumstances.
This case is being led by US Attorney Markenzy Lapointe for the Southern District of Florida, alongside Jeffrey B. Veltri, the Special Agent in Charge at the FBI’s Miami Field Office, with Assistant US Attorney Trevor Jones overseeing the prosecution.