Is Coinseed A Bad Seed?
Written by: Lauren Rowe
New York Attorney General Letitia James ordered Coinseed, a cryptocurrency trading app, to be shut down by its CEO, Delgerdalai Davaasambuu. In February, the lawsuit, filed by James, accused Coinseed of fraud by selling an unregistered coin, charging hidden fees, and making false claims.
Coinseed continued its fraudulent acts after the initial suit was filed. To protect investments on the platform, James motioned for an injunction and appointment of a receiver to the case. Despite James’ efforts to curb Coinseed’s actions, the company went on to defy legal complaints by creating and selling a new virtual currency.
“For years, Coinseed and its CEO have engaged in egregious and fraudulent activities that have cheated investors out of millions,” said Attorney General James.
“In defiance of court orders, this company has continued to operate illegally and unethically, holding investors’ funds hostage and underscoring the dangers of investing in unregistered virtual currencies. We will continue to pursue all who attempt to abuse and manipulate the system and ensure investors are protected.”
Since James’ filing in February, numerous investors have voiced their concerns about their assets in the face of fraud. Fortunately for investors, the ruling of the case found that all invested or traded assets through Coinseed, a total of over $3 million, must be returned by the defendants.
Attorney General James Shuts Down Virtual Currency Trading Platform and Stops Cryptocurrency CEO From Continuing Fraudulent Conduct. (2021, September 13). New York Attorney General. https://ag.ny.gov/press-release/2021/attorney-general-james-shuts-down-virtual-currency-trading-platform-and-stops
Tan, E. (2021, September 13). Coinseed Ordered to Shut Down Following Lawsuit From New York Attorney General. CoinDesk. https://www.coindesk.com/policy/2021/09/13/coinseed-ordered-shut-down-following-lawsuit-from-new-york-attorney-general/