Mosaic Exchange and CEO were fined over US$1.1 million and permanently banned from business for digital asset fraud

PANews reported on January 15 that the U.S. Commodity Futures Trading Commission (CFTC) recently announced that the Federal District Court for the Southern District of Florida made a final default judgment against Mosaic Exchange Ltd. and its CEO Sean Michael, requiring them to pay approximately US$468,600 in compensation. , the return of illegal gains of US$61,000 and a civil penalty of US$660,000, totaling more than US$1.1 million. In addition, the defendants are permanently prohibited from registering CFTC-related businesses and participating in CFTC-regulated market transactions.

The case shows that between February 2019 and June 2021, the defendant used false propaganda to induce customers to invest in digital assets such as Bitcoin, falsely claiming to manage tens of millions of dollars in assets and have a high profitability, but actually did not generate the claimed income. And part of the customer funds were used for personal consumption.

The CFTC reminds the public to beware of commodity pool scams and recommends checking the CFTC registration information of relevant companies before investing.