CFTC Indicts Mosaic Exchange Founder for Running Fraudulent Crypto Operations The US Commodity Futures Trading Commission
(CFTC) has announced a civil enforcement action against a crypto trading platform called Mosaic Exchange Limited and its owner,
Sean Michael.
In a press release dated September 27,
the CFTC disclosed that the Pennsylvania-based limited liability company and its founder operated a fraudulent digital asset commodity
scheme. This occurred
from February 2019 to June 2021 before their actions drew the agency's attention.
The US agency
stated that the cryptocurrency exchange advertised itself as a genuine Bitcoin trading operation with tens of millions of dollars in assets under management
(AUM).
Under this guise, it fraudulently obtained hundreds of thousands of dollars worth
of Bitcoin and other funds from 17 US residents and other nationals to trade the crypto market on their behalf. However, contrary to its claims,
the received funds were misappropriated.
Providing more details,
the CFTC said the fraudulent crypto operation was able to lure its victims with claims of operating an in-house proprietary trading algorithm. This would purportedly deliver monthly returns ranging
from 20% to 60% per month.
