US Authorities Seek Court Order to Shut Down Coinseed, A Crypto Trading Platform Allegedly Duping Thousands of Investors

After the New York Attorney General Letitia James, filed a lawsuit against Coinseed, the platform has continually operated at the same time kept duping users. In a recent court order, the attorney general is seeking a court order to immediately shut down the operations of cryptocurrency exchange Coinseed.

US Authorities’ Urgent Action Against Coinseed

The Office of Attorney General Letitia James announced Friday that the attorney general “has taken legal action to immediately halt the continued illegal and fraudulent operations of the cryptocurrency trading platform Coinseed Inc.”

Before the Friday announcement, the attorney filed a motion late Thursday “asking the court for a temporary restraining order, a preliminary injunction, and the appointment of a receiver to immediately block Coinseed and its CEO from making any further unauthorized trades and safeguarding investors’ monies.” Through the notice, the receiver will “oversee all assets to safeguard investments as Attorney General James’ lawsuit proceeds.”

Attorney general James filed a February lawsuit against Coinseed and its two top executives, including founder and CEO Delgerdalai Davaasambuu, said the exchange allegedly “violated New York state laws and illegally squandered investors monies.”

Notwithstanding, Coinseed doesn’t in any way refrain from the actions accused. The report says the “the greed perpetrated by Coinseed and its CEO has not only continued but grown,” adding that “Coinseed and its CEO have continued their fraud and the Office of the Attorney General (OAG) has learned of new fraudulent conduct.” Within the last three months, the OAG “has received over 130 complaints from investors who are concerned about protecting their assets due to Coinseed’s fraudulent conduct.”

 According to the lawsuit filed, the platform allegedly “defrauded thousands of investors across the nation.” The attorney general elaborated:

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,” she concluded.