New York attorney general Letitia James is seeking a court order to immediately cease operations of the Coinseed cryptocurrency exchange. The attorney general previously filed a lawsuit against the crypto exchange, but the platform allegedly continued to function and defraud investors.
US authorities are taking urgent action against Coinseed
Attorney General Letitia James announced Friday that the attorney general has “taken legal action to immediately stop the continued illegal and fraudulent operations of the cryptocurrency trading platform Coinseed Inc.”
A motion was filed late Thursday to “seek an injunction, injunction and appointment of a recipient from the court to immediately prevent Coinseed and its CEO from doing further unauthorized deals and protecting investors’ funds “, it says in the message. The recipient will “monitor all assets to safeguard investments while Attorney General James’ lawsuit continues”.
James filed a lawsuit against Coinseed and its two top executives in February, including founder and CEO Delgerdalai Davaasambuu. They allegedly “violated the laws of New York State and illegally wasted investors’ money.”
In the months since the lawsuit was filed, “The greed of Coinseed and its CEO has not only continued but has grown,” the announcement read, adding that “Coinseed and its CEO have continued their scam and the law firm General ( OAG) has learned of new fraudulent behavior. “In the past three months, the OAG has received“ over 130 complaints from investors concerned about protecting their assets due to Coinseed’s fraudulent behavior ”. According to the filed suit, the platform is said to have “defrauded thousands of investors across the country”.
The Attorney General explained:
This company continues to operate illegally – holding investors ‘funds hostage and conducting unauthorized trades in investors’ portfolios while exhausting accounts and transferring virtual currencies to an unregulated offshore trading platform.
“We filed this motion to immediately cease Coinseed’s illegal activity and protect the remaining investments,” she concluded.
What do you think of the New York Attorney General’s action against Coinseed Crypto Exchange? Let us know in the comments below.
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