The U.S. Commodity Futures Trading Commission (CFTC) has announced a default judgment in the case of Mosaic Exchange Ltd. and its owner and CEO, Sean Michael. The CFTC launched an enforcement action alleging the existence of a fraudulent digital asset commodity scheme. The order is based on a lawsuit filed by the CFTC on September 26, 2023, in which a default judgment found Mosaic and Michael responsible for all violations of CFTC regulations alleged in the lawsuit, including the fraudulent solicitation of 18 individuals in the United States and other countries, purporting to offer services for trading bitcoin and other digital assets, and the misappropriation of client funds. The default judgment order requires them to pay approximately $468,600 in restitution, $60,980 in illegal gains, and $660,000 in civil penalties.