JUST IN: CFTC Charges Fake Cryptocurrency Exchange with Fraud

The US Commodity Futures Trading Commission (CFTC) has filed a civil enforcement action against Mosaic Exchange Limited, a US-based company, and its CEO, Sean Michael.

The lawsuit, filed in the U.S. District Court for the Southern District of Florida, accuses the defendants of running a fraudulent digital asset commodity scheme.

The CFTC alleges that the defendants defrauded at least 17 people in the United States and abroad into investing hundreds of thousands of dollars in Bitcoin or other funds. These funds were allegedly for the defendants to trade BTC and other digital asset commodities on behalf of clients. However, it is alleged that the defendants embezzled these customer funds.

In the ongoing lawsuit, the CFTC seeks restitution, damages, civil penalties, permanent trading and registration bans, and a permanent injunction against further violations of the Commodity Exchange Act (CEA) and CFTC regulations.

The lawsuit states that from February 2019 to June 2021, the defendants falsely represented Mosaic as a cryptocurrency trading platform with tens of millions of dollars in assets under management. It is stated that they offer a special trading algorithm with an 82% accuracy rate and promise monthly profit margins ranging from 20% to 60%.

However, the lawsuit argues that these claims are false.

*This is not investment advice.

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