The US Commodity Futures Trading Commission (CFTC) has filed a civil enforcement action against Pennsylvania-based Mosaic Exchange Limited and its owner and Chief Executive Officer Sean Michael for allegedly running a fraudulent digital asset commodity scheme. The CFTC alleges that Mosaic and its operators fraudulently solicited and induced at least 17 people in the US and other countries to give them hundreds of thousands of dollars worth of bitcoin or other funds to trade BTC and other digital asset commodities on the customer’s behalf, but instead misappropriated them.Between February 2019 and June 2021, Mosaic allegedly made false representations that it had significant assets under management, a proprietary trading algorithm with an 82% accuracy rate, and consistently achieved high-profit margins ranging from 20% to 60% per month. The CFTC states that Mosaic did not possess the substantial assets under management as advertised, and that the trading algorithm was not as accurate as claimed. The profit margins were also unsubstantiated, and Mosaic did not have the partnerships or broker agreements that were advertised.CFTC Commissioner Kristin Johnson called the entire scheme a “sham” and a “virtual house of cards” that resulted in unsuspecting investors losing massive hard-earned wealth. Johnson further added that US financial regulators should focus on regulatory requirements at the point of intermediation in order to protect customers and maintain market integrity.

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Information	Details
Geography	North America
Countries	🇺🇸
Sentiment	negative
Relevance Score	8
People	Kristin Johnson, Sean Michael
Companies	Mosaic Exchange Limited, CFTC, Binance Futures, Commodity Futures Trading Commission, US District Court for the Southern District of Florida
Currencies	Bitcoin, Ethereum
Securities	None