The CFTC has charged crypto trading platform Mosaic Exchange Limited and owner Sean Michael with operating a "fraudulent digital asset commodity scheme".
CFTC Accuses Cryptocurrency Trading Platform Mosaic Of Fraud
The CFTC has charged crypto trading platform Mosaic Exchange Limited and owner Sean Michael with operating a "fraudulent digital asset commodity scheme," involving hundreds of thousands in client funds.
Mosaic allegedly claimed to have tens of millions of dollars in assets under management and profit margins as high as 60% monthly using an algorithmic trading approach, according to the regulator. In addition, the platform misled about collaborations with prominent exchanges BitMEX and Binance.
In reality, Mosaic never traded client deposits and misappropriated some funds for Michael’s personal expenses. Over 17 victims from the US and abroad lost money by entrusting Mosaic to execute futures, swaps and leveraged spot trades as advertised.
CFTC Commissioner Kristin Johnson condemned the "sham" operations as "a virtual house of cards."
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