Coinseed shuts down following lawsuit


And they are slamming NYAG Letitia James for this! Automated crypto trading app Coinseed has announced that it will cease operation due to a lawsuit from the New York Attorney General.

The lawsuit was originally filed in February, and accused the company of swindling its users of $1 million through an unregistered initial coin offering (ICO) in 2018. It also claimed that Coinseed charged customers hidden fees and made false claims.

Letitia James’ lawsuit also alleged that the firm did not have a BitLicense or federal clearance of operating as an unregistered commodities broker dealer.

Coinseed Logo

In May, James filed a court motion to shut down Coinseed’s operations and freeze its trading activity, receiving a court order to shutter the company the first day of this week.

This is what she said in a statement released on Monday:

“When platforms operating illegally in New York seek to trade on investors’ money, we will use every tool at our disposal to stop their unlawful actions. This order appoints a court-appointed receiver before any other investments are squandered by Coinseed and its CEO.”

Going for the kill here!

Of course, Coinseed is not taking it light, and has struck back.

Company CEO Delgerdalai Davaasambuu responded with a lengthy statement posted on its website, labeling the shutdown immensely mournful and frustrating. He denied the claims made in the lawsuit, saying the company’s only mistake was simply living in New York.

And despite the fact that the New York state attorney general receiving more than 170 complaints in its office since it filed the suit in February, Davaasambuu wrote that his company has not received any complaints from its users.

Welcome to the colorful world of scams!

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