IcomTech CEO Admits Fraud Charges; Mosaic Exchange Faces CFTC Scrutiny
Summary:
Marco Ruiz Ochoa, former CEO of IcomTech, admitted to wire fraud conspiracy regarding a Ponzi scheme within the firm. The U.S. Justice Department cited that investors were promised daily returns that never materialized. Charges were also mentioned against Mosaic Exchange and its CEO, Sean Michael, for misleading investors about 'futures, swaps, and leveraged spot transactions in cryptocurrency.' Both cases underscore regulators' growing scrutiny of the cryptocurrency sector.
On September 27, Marco Ruiz Ochoa admitted to conspiring to commit wire fraud at the Southern District Court of New York, in connection with a Ponzi scheme running under the tech firm, IcomTech. Ochoa held the position of CEO at IcomTech from its establishment in 2018 up until 2019.
The U.S. Justice Department revealed that IcomTech had wooed investors by promising daily returns on investment products, claiming to be a cryptocurrency mining and trading corporation. The company showcased extravagant expos and communal gatherings globally to pull in consumers. IcomTech also created its signature token, named Icom.
There are allegations that the company never actually engaged in crypto mining and investors were incapable of withdrawing the profits reflected in their accounts. The firm disintegrated by the end of 2019. Charges were pressed against Ochoa and other top executives of IcomTech in November. Ochoa could face up to 20 years in prison. U.S. Attorney Damian Williams affirmed that the guilty plea confirms their determination to take down anyone exploiting digital currency for fraudulent activities.
Ochoa's guilty plea was given a day subsequent to the sentencing of Pablo Rodriguez, co-founder of the AirBit Club Ponzi, to a 12-year imprisonment by another judge from the Southern District Court of New York.
On the very same day, i.e., September 27, the Commodity Futures Trading Commission (CFTC) declared charges against Mosaic Exchange Limited and its CEO Sean Michael. Allegedly, Mosaic Exchange had convinced investors to permit them to make "futures, swaps, and leveraged spot transactions in cryptocurrency" on their part. According to a statement issued by CFTC Commissioner Kristin Johnson regarding these accusations: the firm was capable of trading digital asset derivatives on BitMEX and Binance, two platforms that the CFTC has previously charged for not registering as an FCM, SEF, or DCM, and for neglecting to adopt anti-laundering and know-your-customer proceedings. Johnson asserted that the CFTC should start implementing regulations to address any shortcomings within these unique market frameworks.
Published At
9/27/2023 9:40:00 PM
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