Crypto trading app Coinseed has been ordered shut down by the Supreme Court of the State of New York following a lawsuit from state Attorney General Letitia James.
- James secured a court judgment on Sept. 9 against Coinseed, as well as the company’s CEO, Delgerdalai Davaasambuu, to permanently halt operations, put in place a permanent receiver to protect investors’ funds and take control of Coinseed’s website to prevent the possibility of future schemes.
- The court also ordered a $3 million judgment against the defendants to be awarded to victims of Coinseed’s fraudulent conduct and operations as an unregistered commodities dealer.
- The lawsuit, initially filed in February, accused Coinseed and its CEO of defrauding thousands of investors across the country out of millions of dollars by selling them an unregistered initial coin offering in 2018, as well as by charging hidden fees and making false claims.
- The company was temporarily shut down in June via a preliminary injunction, but according to James, Coinseed continued to carry out illegal activities.
- “In defiance of court orders, this company has continued to operate illegally and unethically, holding investors’ funds hostage and underscoring the dangers of investing in unregistered virtual currencies,” James said in a press release.
- Coinseed Chief Financial Officer Sukhbat Lkhagvadorj didn’t immediately return a request for comment.
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