CFTC Files Fraud Charges Against Bogus Crypto Exchange
In a lawsuit against a domestic cryptocurrency exchange, the US Commodity Futures Trading Commission (CFTC) asserts that the business violates federal regulations.
Mosaic Exchange Limited, a corporation established in the United States, and its chief executive officer, Sean Michael, are being sued in civil court by the Commodity Futures Trading Commission (CFTC) of the United States.
According to the complaint filed in the U.S. District Court for the Southern District of Florida, the defendants are engaged in a fraudulent digital asset commodities scam.
The Commodity Futures Trading Commission (CFTC) claims that at least 17 victims lost hundreds of thousands of dollars they invested in Bitcoin or other monies due to the defendants’ fraudulent schemes. The defendants believed used the money to trade bitcoin and other digital assets on their customers’ behalf. However, the defendants are accused of stealing this money from their customers.
The Commodity Futures Trading Commission (CFTC) is now seeking compensation, damages, civil fines, a lifetime ban on trading and registration, and a lifetime injunction to prevent any subsequent breaches of the Commodity Exchange Act (CEA) and CFTC rules.
According to the complaint, between February 2019 and June 2021, the defendants made Mosaic seem like a legitimate cryptocurrency trading platform that handled tens of millions of dollars in assets. They claim to have a unique trading algorithm that has an 82% success rate and may generate 20% to 60% in monthly profits.