New York AG Shuts Down Crypto Exchange on Charges of Illegal Converting User Funds to Dogecoin

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The New York attorney general has obtained a court order to officially shut down the Coinseed crypto exchange on charges related to investor fraud.

What Happened: According to a Bloomberg report, New York Attorney General Letitia James ordered crypto exchange Coinseed Inc to shut down and pay a $ 3 million fine.

Among a series of other accusations, Coinseed allegedly converted its clients’ funds into Dogecoin (CRYPTO: DOGE) without their consent.

In June, CoinDesk reported that an account of a user who found that their crypto wallet, which was previously spread across a variety of cryptocurrencies, was converted into Dogecoin overnight.

The user’s wallet, which was originally worth $ 48,000, turned into $ 31,000 in Dogecoin.

As of February, Deputy Attorneys General Brian Whitehurst and Amita Singh have reported receiving 170 complaints from Coinseed customers that their wallet balances have declined by tens of thousands of dollars.

The crypto exchange’s meeting with the GA’s office dates back to February, when it faced charges for selling unregistered securities worth $ 1 million to support its growth. business.

Coinseed CEO Delgerdalai Davaasambuu and former CFO Sukhbat Lkhagvadorj were also named in the lawsuit.

According to deputy lawyer Singh, Davaasambuu has been completely silent on the radio since he promised to return investors’ funds.

Price Action: At time of going to press, DOGE was trading at a price of 23 cents, gaining 1.62% in the past 24 hours.

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