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US Authorities Seek Court Order to Shut Down Crypto Trading Platform Allegedly Duping Thousands of Investors Skip to main content

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

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

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

US Authorities Take Urgent Action Against Coinseed

The Office of Attorney General Letitia James announced Friday that the attorney general “has taken legal action to immediately halt the continued illegal and fraudulent operations of the cryptocurrency trading platform Coinseed Inc.”

A motion was filed late Thursday “asking the court for a temporary restraining order, a preliminary injunction, and the appointment of a receiver to immediately block Coinseed and its CEO from making any further unauthorized trades and safeguarding investors’ monies,” the notice reads. The receiver will “oversee all assets in an effort to safeguard investments as Attorney General James’ lawsuit proceeds.”

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

However, in the months since the lawsuit was filed, “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 the Office of the Attorney General (OAG) has learned of new fraudulent conduct.” Within the last three months, the OAG “has received over 130 complaints from investors who are concerned about protecting their assets due to Coinseed’s fraudulent conduct.” According to the lawsuit filed, the platform allegedly “defrauded thousands of investors across the nation.”

The attorney general elaborated:

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.

“We filed this motion to immediately halt Coinseed’s unlawful activity and protect the investments that are left,” she concluded.

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

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