Adam Todd, the founder and former CEO of Digitex Futures Exchange, has pleaded guilty to intentionally failing to establish an Anti-Money Laundering (AML) program at the company. This admission was made in a federal court in the Southern District of Florida on May 7.

Todd's plea stems from charges brought earlier this year, accusing him of operating an unregistered futures platform targeting US customers from 2018 to 2022, without implementing vital AML and Know Your Customer (KYC) protocols. Notably, in 2020, Todd announced that Digitex would not require KYC identity verification, following a data breach. This decision raised concerns, as a former exchange employee had stolen user information, including passport and driver's license data.

The US Commodity Futures Trading Commission (CFTC) filed a lawsuit against Todd and Digitex in 2022, resulting in an order for $16 million in disgorgement and penalties. Todd resigned as Digitex CEO in October 2022 and has since been working as the lead developer at Digitex Games.

Todd faces up to five years in prison and a $250,000 fine for his actions. His sentencing hearing date has not been announced.

This case adds to the growing list of legal challenges faced by crypto exchange CEOs, including FTX's Sam Bankman-Fried and Binance's Changpeng Zhao, who have also faced charges related to AML violations and fraud.