Crypto exchange Mosaic and its CEO ordered to pay nearly $1.2 million in fines to CFTC

According to Crowdfund Insider, the US Commodity Futures Trading Commission (CFTC) announced a default judgment against Mosaic Exchange Ltd. and its owner and CEO Sean Michael in a case involving fraudulent digital asset commodity programs. The order is based on a lawsuit filed by the CFTC on September 26, 2023, and the default judgment holds Mosaic and Michael responsible for all the violations of CFTC regulations alleged in the lawsuit, including fraudulently soliciting 18 individuals from the US and other countries/regions, claiming to offer bitcoin and other digital asset trading services while misappropriating customer funds. The default judgment requires them to pay approximately $468,600 in restitution, $60,980 in illegal gains, and a civil penalty of $660,000.