US Authorities Seek Court Order to Shut Down Crypto Trading Platform Allegedly Duping Thousands of Investors – Regulation Bitcoin News


New York Attorney General Letitia James is seeking a court order to immediately close Coinseed cryptocurrency exchange operations. The attorney general had previously filed a lawsuit against the crypto exchange, but the platform allegedly continued to operate and deceived investors.

US Authorities Urgently Act Against Combined

Attorney General Letitia James announced Friday that the attorney general “has pursued a lawsuit to immediately stop the ongoing illegal and fraudulent operations of the crypto trading platform Coinseed Inc.”

A motion was filed late Thursday “asking the court for a temporary restraining order, a prior warrant and the appointment of a receiver to immediately block Coinseed and its CEO from conducting further unauthorized trades and protect investors’ money,” the notice reads. The receiver “will monitor all assets to protect investments while Attorney General James’ trial proceeds.”

James filed a lawsuit in February against Coinseed and its two chief executives, including founder and CEO Delgerdalai Davaasambuu. They allegedly “violated New York state laws and illegally wasted investors’ money.”

However, in the months after the lawsuit was filed, “the greed committed by Coinseed and its CEO not only continued, but grew,” the announcement describes, adding that “Coinseed and its CEO continued their fraud and the prosecutor’s office. ) found out about new fraudulent behavior. “In the last three months, the OAG has” received more than 130 complaints from investors who are concerned about protecting their assets due to Coinseed’s fraudulent behavior. ” According to the lawsuit, the platform allegedly “defrauded thousands of investors across the nation.”

The Attorney General elaborated:

This company continued to operate illegally – hijacking investors ’finances and conducting unauthorized trades on investors’ portfolios, emptying accounts and transferring virtual currency to a foreign, unregulated trading platform.

“We have tabled this motion to immediately stop Coinseed’s illegal activity and protect the remaining investments,” she concluded.

What do you think of NY’s attorney general’s action against Coinseed crypto exchange? Let us know in the comments section below.

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