New York Attorney General Shuts Down Crypto Trading Platform Coinseed That Has Deceived Millions Of Investors – Bitcoin News

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New York Attorney General Letitia James has obtained a court order to shut down the Coinseed cryptocurrency exchange. The order also “permanently appoints the court receiver to obtain, protect and return all assets invested and traded through” the exchange.

New York Attorney General Letitia James shuts down Crypto Exchange

New York Attorney General Letitia James’s office announced Monday that the Attorney General has shut down cryptocurrency trading platform Coinseed.

James secured a judgment against Coinseed and its founder and CEO, Delgerdalai Davaasambuu, “which permanently ends their illegal and fraudulent operations,” describes the announcement, adding:

The judgment obtained by Attorney General James today appoints the court receiver to obtain, protect and return all assets invested and traded through Coinseed and orders a pecuniary judgment against the defendants in the amount of $ 3,061,511, at the both together and separately.

Attorney General James filed a lawsuit against Coinseed in February for defrauding thousands of investors in the United States. Coinseed CEO Delgerdalai Davaasambuu and CFO Sukhbat Lkhagvadorj were also charged.

The attorney general’s office further revealed that since filing the complaint, it has received more than 175 complaints from investors about the exchange.

Despite the lawsuit, Coinseed and its CEO “continued their fraud and began further fraudulent behavior by trading investor accounts without authorization and then preventing investors from accessing those accounts,” the announcement notes.

In June, the New York State Supreme Court granted James’ motion for a preliminary injunction. However, Coinseed and its CEO “defied this preliminary injunction by creating, offering and selling new virtual currency – including to New York investors – and did not respond to Attorney General James’ complaint.”

Attorney General James said:

For years, Coinseed and its CEO have engaged in blatant and fraudulent activity that has deceived millions of investors. In defiance of court rulings, this company has continued to operate illegally and unethically, holding investor funds hostage and highlighting the dangers of investing in unregistered virtual currencies.

What do you think of the closure of Coinseed by New York Attorney General Letitia James? Let us know in the comments section below.

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