### Digital Asset Fraud Case Sentenced#

Digital Asset Fraud Case Sentenced: Mosaic Exchange and its CEO Face Over $1.1 Million in Fines and Permanent BanThe Commodity Futures Trading Commission (CFTC) has ordered Mosaic Exchange and its CEO, Sean Michael, to pay over $1.1 million in fines and restitution, and permanently barred them from registering with the CFTC and participating in CFTC-regulated markets. The order stems from charges that the company defrauded customers between February 2019 and June 2021 through a deceptive cryptocurrency scheme.The CFTC alleged that Mosaic Exchange lured customers into investing in digital assets, such as Bitcoin, by falsely claiming to manage tens of millions of dollars in assets with high profitability rates. In reality, the company did not generate the promised returns, and some customer funds were diverted for personal use. The CFTC's final judgment requires Mosaic Exchange and its CEO to pay approximately $468,600 in restitution, $61,000 in disgorgement of ill-gotten gains, and $660,000 in civil monetary penalties. The CFTC warned that fraud emanating from unregistered entities is a growing threat, urging the public to be wary of commodity pool scams and to verify the CFTC registration information of any company before investing. This judgment underscores the growing regulatory scrutiny of the digital asset space as regulators seek to combat fraud and protect investor interests. The decision could signify a move towards a more secure future for the cryptocurrency landscape.