New York Attorney General sues to halt the operations of crypto app company Coinseed
May 7, 2021, 11:57AM EDT
1 min read
On May 6, New York Attorney General (NYAG) Letitia James requested a temporary restraining order and other legal action against crypto app company Coinseed.
The Thursday lawsuits build on the initial legal action the NYAG took against Coinseed on February 17. At the time, James claimed the crypto company was defrauding investors and did not have the proper licensure.
Coinseed CEO Delger Davaasambuu told The Block that the allegations were "full of false accusations” and that “Coinseed has left NY in 2019 and we haven’t accepted any users from NY since 2018." Davaasambuu did not respond in time for comment for the NYAG’s most recent legal action.
Still, the NYAG claims that Coinseed has been making unauthorized and fraudulent transactions, and that the NYAG office received more than 130 complaints since February from Coinseed investors worried about their assets, according to a release published Friday.
“In the months since we filed our suit, the greed perpetrated by Coinseed and its CEO has not only continued, but grown. 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,” James said in the statement.