The U.S. Commodity Futures Trading Commission (CFTC) has secured a $1.1M judgment against Mosaic Exchange Ltd. and its CEO, Sean Michael, for running a fraudulent digital asset scheme that targeted 18 victims globally. The judgment exposes their misuse of funds, false profit claims, and deceptive practices. The orders stem from the CFTC’s three-count fraud complaint filed Sept. 26, 2023.
Key Points:
- Who? Mosaic Exchange Ltd. (Pennsylvania-based) and CEO Sean Michael (Miami).
- What? Fraudulent solicitation and misappropriation of funds in a digital asset trading scheme.
- Penalty: $1.1M+ in restitution, disgorgement, and penalties.
- Duration: February 2019 – June 2021.
- Claims: False asset management, profit margins, and non-existent crypto exchange partnerships.
Short Narrative:
The U.S. District Court for the Southern District of Florida has handed down a damning default judgment against Mosaic Exchange Ltd. and Sean Michael for orchestrating a deceptive crypto trading scheme. Over two years, they falsely advertised millions in assets under management, high win rates, and lucrative partnerships to lure victims into transferring Bitcoin and other funds. Instead of delivering promised profits, Mosaic misrepresented trading outcomes and diverted customer funds for personal indulgences like travel and dining.
Actionable Insight:
This case underscores the persistent risks in the crypto space. Investors must verify claims and monitor for red flags like unrealistic profit promises and vague partnerships. Regulators worldwide are increasingly targeting such frauds—compliance vigilance is critical for all market participants.
Call for Information:
FinTelegram invites whistleblowers and victims with insights into similar schemes to step forward. Submit tips at Whistle42.com—your information could be key to exposing the next fraud.
Stay vigilant and informed.