New York attorney general orders shutdown of Coinseed

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The office of New York Attorney General Letitia James has taken legal actions to shut down the “continued illegal and fraudulent” operation of cryptocurrency trading platform Coinseed Inc.

On Thursday, a motion for a temporary restraining order, preliminary injunction, and appointment of a receiver was filed by the office in order to prevent the company and its Chief Executive Officer (CEO) Delgerdalai Davaasambuu from conducting unauthorized trades and safeguarding investors’ money.

As the lawsuit filed by AG James progresses, the receiver will oversee all assets to protect the investments made in the trading platform.

The legal actions taken against Coinseed and two of its top executives, including its CEO, were based on violations allegedly committed against New York state laws and “illegally squandering investor’s monies.”

Behind the back of investors

James has elaborated the reason behind the legal action by her office.

According to news.bitcoin.com, the official said, “This company has continued to operate illegally – holding investors’ funds hostage and conducting unauthorized trades in investor’s portfolios.”

James also noted that in the process, Coinseed depleted the accounts of their users and has transferred virtual currencies to an offshore and unregulated trading platform. Because of this, there were enough grounds for charges that resulted in the filing of a lawsuit.

Business as usual

James lamented that despite the lawsuit, the company and its CEO were still “business as usual,” and in fact, their “greed” not only continued but also has grown.

In an announcement from the office of the New York Attorney General, it was learned that Coinseed and Davaasambuu continued their usual ways and are involved in new fraudulent activities.

The office has also shared that they received more than 130 complaints from investors who expressed their concerns about protecting their assets due to the illegal dealings of Coinseed.

Image courtesy of Crypto World/YouTube

Jet Encila

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Jet Encila

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