The New York Attorney General and the US Securities and Exchange Commission have filed charges against a cryptocurrency trading platform that allegedly defrauded thousands of investors of over a million dollars.
US regulators claim Coinseed operates illegal crypto trading platform
New York Attorney General Letitia James took legal action on Wednesday to shut down the cryptocurrency trading platform operated and operated by Coinseed Inc. The lawsuit, filed in the New York State Supreme Court, alleges that Coinseed operates “an illegally operated cryptocurrency trading platform that has defrauded thousands of investors across the country of more than $ 1 million. “
In the lawsuit, Coinseed Inc., its founder and CEO Delgerdalai Davaasambuu and its CFO Sukhbat Lkhagvadorj are named as defendants.
According to the New York Attorney General’s announcement, “Attorney General is suing James for closing down crypto trading platform” and “recovering defrauded funds for thousands of investors.” The announcement states that “Coinseed has deliberately ignored numerous securities and commodity registration laws”.
Attorney General James is attempting to prevent Coinseed and the two individual defendants from continuing to act as unregistered commodity broker traders and returning investments in Coinseed’s worthless cryptocurrency, the CSD token, through their mobile application.
The attorney general alleges that “Coinseed and the individual defendants were illegally trading cryptocurrencies such as Bitcoin without being a registered brokerage dealer in New York, while failing to disclose certain fees for trading virtual currencies on behalf of their investor.”
The lawsuit also alleges that “the defendants attempted to fund their fraudulent business by raising funds in an unregistered securities offering and luring investors with false claims about their professional experience and the role of their management team.” The token sale took place between December 2017 and May 2018. Hundreds of investors attended, including those in the United States
On the same day, the SEC announced that it had filed charges against Coinseed Inc. and its CEO for registration violations related to the offering and sale of securities for the company’s digital assets. “The SEC is trying to obtain permanent injunctive relief, disgorgation, and prejudice interest and civil sanctions,” said the regulator.
What do you think of the charges against Coinseed? Let us know in the comments below.
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