Arab Press

بالشعب و للشعب
Friday, Aug 22, 2025

NY AG sues to shut down crypto app Coinseed alleging it sells a worthless currency and defrauded investors

NY AG sues to shut down crypto app Coinseed alleging it sells a worthless currency and defrauded investors

New York's attorney general alleges that Coinseed wasn't registered to trade cryptocurrencies like bitcoin or sell its own digital coin.
New York Attorney General Letitia James announced on Wednesday her office has sued to shut down Coinseed, a cryptocurrency-trading app that prosecutors allege ignored securities laws and defrauded thousands of investors.

The lawsuit alleges that Coinseed and its two top executives, CEO Delgerdalai Davaasambuu and CFO Sukhbat Lkhagvadorj, "were unlawfully trading cryptocurrencies, like Bitcoin, without being a registered broker-dealer in New York," according to a Wednesday press release.

James said in the filing that Coinseed sold its own cryptocurrency, the CSD token, to fund its trading platform, but that the company wasn't registered legally to do so. That rendered the currency "worthless," James' office said.

In soliciting investors for their initial coin offering — the equivalent of an initial public offering but for digital currency — Coinseed's two top executives lied about their professional experience, James said. Despite having "little financial services experience," Lkhagvadorj "misrepresented himself as a former Wall Street trader," according to the filing.

The lawsuit also alleges that Coinseed added on extra undisclosed fees to trades, while advertising itself as a low-fee platform.

Davaasambuu told Insider he denies the allegations and takes issue with several of the attorney general's charges. He said Coinseed left New York in 2019 and has not accepted users from the state since 2018.

"I'm 100% sure that the suit is full of false accusations. Embarrassingly bad," he said in an email.

According to Davaasambuu, Coinseed didn't allow any US investors to participate in its ICO, hasn't received any complaints from investors, and has paid out dividends to coin holders since 2018.

He also claimed that no cryptocurrency exchange has licensed commodities broker-dealers, and that "they're trying to make us an example" to force all cryptocurrency firms to have licensed brokers. He denied the allegation that Coinseed tacked on extra fees.

James said she is seeking restitution for the thousands of Coinseed investors that she said were defrauded out of more than $1 million. She also seeks to bar Coinseed and its executives from "participating in any future securities offerings or as commodities broker-dealers," according to the press release.

"For over three years, Coinseed and its executives flagrantly and illegally violated New York state laws, but the corporate greed perpetrated by Coinseed while committing fraud against thousands of investors ends now," James said in a statement.

This matter was investigated in parallel with the US Securities and Exchange Commission, which, today, filed a similar but separate action against Coinseed, according to James' announcement.
Comments

Oh ya 5 year ago
No more of a farce than Bitcoin, crypto and paper currency have something in common, neither are backed by anything ever since Nixon closed the gold window in 1971 so neither of them are money. Bitcoin is a stock just like every other stock on the market., but it sure is not money

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Trump Backs Putin’s Land-for-Peace Proposal Amid Kyiv’s Rejection
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
United States Sells Luxury Yacht Amadea, Valued at Approximately $325 Million, in First Sale of a Seized Russian Yacht Since the Invasion of Ukraine
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
Germany Enters Fiscal Crisis as Cabinet Approves €174 Billion in New Debt
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Russia Formally Recognizes Taliban Government in Afghanistan
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Germany Seeks Taliban Deal to Deport Afghan Migrants
Emirates Airline Expands Market Share with New $20 Million Campaign
Robots Compete in Football Tournament in China Amid Injuries
×