The US commodities regulator has targeted another crypto exchange for allegedly running a “fraudulent” digital asset commodity scheme. The Commodity Futures Trading Commission (CFTC) filed suit in the U.S. District Court for the Southern District of Florida against Mosaic Exchange Limited and its owner and CEO, Sean Michael. The CFTC alleged that Mosaic and its executives defrauded at least 17 people in the U.S. and other countries of using bitcoin or other funds to trade BTC and other digital asset commodities on behalf of clients. 😱📉
It was stated that Mosaic did not have significant assets under management and was not financially strong as it claimed. Contrary to the 82% accurate trading algorithm representation, Mosaic was found to make losses when trading for its clients. Additionally, the profit margins could not be proven as claimed in the complaint. Mosaic has also not consistently achieved the high returns promised to investors. The complaint also stated that the platform did not have the partnerships or agency agreements advertised.
It was stated that Mosaic did not have significant assets under management and was not financially strong as it claimed. Contrary to the 82% accurate trading algorithm representation, Mosaic was found to make losses when trading for its clients. Additionally, the profit margins could not be proven as claimed in the complaint. Mosaic has also not consistently achieved the high returns promised to investors. The complaint also stated that the platform did not have the partnerships or agency agreements advertised.