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 $468,600 in compensation, $61,000 in disgorgement of illegal gains, and $660,000 in civil penalties, totaling more than $1.1 million. In addition, the defendants were permanently banned from registering CFTC-related businesses and participating in CFTC-regulated market transactions.
The case shows that from February 2019 to June 2021, the defendant induced customers to invest in digital assets such as Bitcoin through false propaganda, falsely claiming to manage tens of millions of dollars in assets and have a high rate of profitability, but in reality did not generate the claimed returns, and part of the customer funds were used for personal consumption.
The CFTC reminds the public to beware of commodity pool scams and recommends verifying the CFTC registration information of relevant companies before investing.
