CFTC accuses Mosaic Exchange Founder of Creating Cryptocurrency Scheme

The Commodity Futures Trading Commission (CFTC) has accused crypto trading platform Mosaic Exchange Limited and its owner of creating a "fraudulent digital asset trading scheme." According to the regulator, the exchange faked asset trading volume and profitability in order to attract customers. In the United States and two other countries, at least 17 people were affected by the site's activities, who transferred "hundreds of thousands of dollars" in bitcoins and other assets to the platform. The funds were supposed to be used for trade, but "were misappropriated." According to the CFTC's indictment, Mosaic founder Sean Michael claimed that the platform manages tens of millions of dollars, and its algorithm generates up to 60% of profits per year. Michael also talked about partnerships with major exchanges BitMEX and Binance, which is not true. The founder of the site used customer funds, among other things, to pay for his transportation costs and trips to restaurants.