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Saturday, September 18, 2021

NYAG Letitia James Requests Files to Halt the Operations of Coinseed Over Fraudulent Activities

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New York Attorney General Letitia James in a Thursday court filing has requested to immediately halt all operations of the mobile cryptocurrency app Coinseed for fraudulent activities. Earlier in February NYAG James has filed a civil lawsuit against Coinseed Inc. and two of its top executives including founder and Chief Executive Officer Delgerdalai Davaasambuu.



According to the court filing, Coinseed continued to indulge in several unauthorized transactions despite the lawsuit against them. James explained,

“Three months ago, we filed this case against Coinseed and its executives alleging that they violated New York state laws and illegally squandered investors’ money. However, in the months since we filed our suit, the greed perpetrated by Coinseed and its CEO has not only continued but grown. This company has continued to operate illegally — holding investors’ funds hostage and conducting unauthorized trades in investors’ portfolios while depleting accounts and transferring virtual currency to an offshore, unregulated trading platform.

NYAG office has received nearly 130 complaints since the filing of the lawsuit in February where investors raised alarms about having their funds being held hostage by the crypto firm.

Coinseed Refutes NYAG Allegation Over Unauthorized Activities

Coinseed CEO had refuted all claims of fraudulent activity claiming they had closed their operations and service offerings to New York customers as early as 2018 and all the accusations against them are mere baseless allegations.

NYAG has recently settled the much-hyped Bitfinex Tether lawsuit over fund mismanagement for $18.5 million and the crypto exchange was barred from offering its service in New York. Both parties claimed victory in the case as Bitfinex claimed NYAG was unable to prove their allegations about USDT backings and fund mid handling, while NYAG suggested that they found enough evidence to fine the firm and seize their operations in New York.

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

About Author

An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.

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