news 
$1.1M Penalty Slapped on Mosaic Exchange in Major Crypto Fraud Scandal
A significant crypto fraud scandal has come to light as the Commodity Futures Trading Commission (CFTC) slaps a massive penalty of $1.1 million on Mosaic Exchange Ltd and its CEO Sean Michael.
According to the CFTC, from February 2019 to June 2021, Mosaic and Michael engaged in fraudulent practices by misrepresenting profits, assets under management, and partnerships with other crypto exchanges. These fabricated claims were used to solicit funds from a total of 18 unsuspecting customers.
The investigation revealed that the company had misused client funds for personal expenses such as travel and dining. This egregious breach of trust has led to severe financial penalties.
In a statement, the CFTC emphasized its commitment to safeguarding investors from unregistered and fraudulent operations. The agency urged investors to verify firms through the National Futures Association database before making any investment decisions.
The court’s judgment requires Mosaic Exchange Ltd and CEO Sean Michael to pay approximately $468,600 in restitution, $60,980 in disgorgement, and a staggering $660,000 civil penalty. Additionally, both parties have been permanently banned from trading and prohibited from registering with the CFTC.
This high-profile case highlights the risks of unverified investment schemes in the digital asset market. The CFTC encourages individuals to report any suspicious activities via its hotline or whistleblower program, which offers monetary rewards for actionable tips.
The CFTC’s official site provides valuable information on protecting your investments and staying informed about safe investment practices.
Source: www.crypto-news.net
