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The Commodity Futures Trading Commission (CFTC) has accused the Mosaic Exchange Limited cryptocurrency trading platform and its owner of creating a "fraudulent digital asset trading scheme."
According to the regulator, the exchange faked the volume of asset trading and profitability in order to attract customers. In the United States and two other countries, at least 17 people were affected by the platform'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 trading, but "were misappropriated".
According to the CFTC indictment, Mosaic founder Sean Michael claimed that the platform manages tens of millions of dollars, and its algorithm generates up to 60% of profit per year. Michael also talked about partnering with major exchanges BitMEX and Binance, which is not true. The founder of the platform used customer funds, among other things, to pay for their transportation expenses and trips to restaurants.
"This whole scheme was a sham, a virtual house of cards," said CFTC Commissioner Kristin Johnson.
According to the regulator, the exchange faked the volume of asset trading and profitability in order to attract customers. In the United States and two other countries, at least 17 people were affected by the platform'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 trading, but "were misappropriated".
According to the CFTC indictment, Mosaic founder Sean Michael claimed that the platform manages tens of millions of dollars, and its algorithm generates up to 60% of profit per year. Michael also talked about partnering with major exchanges BitMEX and Binance, which is not true. The founder of the platform used customer funds, among other things, to pay for their transportation expenses and trips to restaurants.
"This whole scheme was a sham, a virtual house of cards," said CFTC Commissioner Kristin Johnson.
