Digitex Games Shuts Down Website As Adam Todd Pleads Guilty to Violating Bank Secrecy Act

Digitex Games, a decentralized casino and Layer 3 blockchain project, has shut down its website following Adam Todd, its lead developer, pleading guilty to the charges brought against him by The U.S. Attorney’s Office for the Southern District of Florida.

According to its statement, the website was shut down “due to legal issues.”

Todd, who was the founder and former CEO of Digitex Futures Exchange, was accused by the U.S. authorities of operating an unregistered futures platform catering to U.S. customers between 2018 and 2022 and failing to establish a robust Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols during his time at the exchange. The authorities filed the charges on February 12, 2024 and on May 7, they released a statement confirming Todd’s guilty plea.

Notably, Todd announced that Digitex will stop implementing KYC identity verification requirements following a data breach in 2020, where sensitive information from users was compromised. Despite claims blocking U.S. IPs and asking users to confirm their non-U.S. residency, the exchange faced legal action from the U.S. Commodity Futures Trading Commission (CFTC), resulting in a court order for $16 million in disgorgement and penalties in 2023.

Todd voluntarily resigned as CEO of Digitex in October 2022 to pursue other endeavours. According to his LinkedIn profile, he is the lead developer at Digitex Games, a position he has held since February 2023.

Todd is now facing a maximum sentence of five years behind bars and a formidable fine of $250,000. However, the date for his sentencing hearing is yet to be fixed.

According to Digitex Games’ statement, an European entity has taken over the project, acquired the technology and intellectual property, and is rebranding it as Rogue Chain.