NY State Attorney General Letitia James has taken legal action against Coinseed to shut down the cryptocurrency exchange immediately. The attorney general previously filed a lawsuit against a crypto exchange, but the platform allegedly continued to operate and dupe investors.
Attorney General Letitia James announced that the attorney general “has taken legal action to immediately halt the continued illegal and fraudulent operation of cryptocurrency trading platform CoinSeed Inc.”
Late Thursday, Attorney General James filed a motion “Asking the court for temporary restraining order, a preliminary injunction and appointment of a receiver to immediately block Coinseed and its CEO from making any future unauthorized trade and safeguarding investor’s monies.”
“Unregulated and fraudulent virtual currency trading platforms have no place in New York,” said Attorney General James.
In February, James filed a lawsuit against Coinseed and its two executives, including founder and CEO Delgerdalai Davaasambuu. They allegedly “violated New York state laws and illegally squandered investors monies.”
James accused Coinseed of bilking $1 million from investors through hidden fees, false claims, and flopped tokens.
However, in this months since filed the lawsuit, “the greed Perpetrated by Coinseed and its CEO has not only continued, but grown,” The announcement describes adding that “Coinseed and its CEO have continued their fraud and office of Attorney General (OAG) has learned of new fraudulent conduct.”
In the nearly three months, the OAG “has received over 130 complaints from investors who are concerned about protecting their asset due to Coinseed’s fraudulent conduct.”
Coinseed has continued to put thousands of investors’ money at risk. According to a lawsuit, the platform allegedly “defrauded thousands of investors across the nation”.
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The Attorney General Elaborated, “This company has continued to operate illegally – holding investors funds hostage and conducting unauthorized trade in investors’ portfolios while depleting account and transferring virtual currency to an offshore, unregulated trading platform.”
“We filed this motion to immediately halt Coinseed unlawful activity and protect the investment that are left,” she concluded.
