Arab Press

بالشعب و للشعب
Saturday, Oct 04, 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
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Trump Organization Teams with Saudi Developer on $1 Billion Trump Plaza in Jeddah
Archaeologists Recover Statues and Temples from 2,000-Year-Old Sunken City off Alexandria
Colombian President Petro Vows to Mobilize Volunteers for Gaza and Joins List of Fighters
Nvidia and Abu Dhabi’s TII Launch First AI-&-Robotics Lab in the Middle East
UK, Canada, and Australia Officially Recognise Palestine in Historic Shift
Dubai Property Boom Shows Strain as Flippers Get Buyer’s Remorse
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
UAE-US Stargate Project Poised to Make Abu Dhabi a Global AI Powerhouse
Saudi Arabia cracks down on music ‘lounges’ after conservative backlash
Saudi Arabia Signs ‘Strategic Mutual Defence’ Pact with Pakistan, Marking First Arab State to Gain Indirect Access to Nuclear Strike Capabilities in the Region
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
Kuwait opens bidding for construction of three cities to ease housing crunch.
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
Could AI Nursing Robots Help Healthcare Staffing Shortages?
Turkish authorities seize leading broadcaster amid fraud and tax investigation
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Big Oil Slashes Jobs and Investments Amid Prolonged Low Crude Prices
Social Media Access Curtailed in Turkey After CHP Calls for Rallies Following Police Blockade of Istanbul Headquarters
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Tether Expands into Gold Sector with Profit-Driven Diversification
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
Israeli Airstrike in Yemen Kills Houthi Prime Minister
After the Shock of Defeat, Iranians Yearn for Change
YouTube Altered Content by Artificial Intelligence – Without Permission
Iran Faces Escalating Water Crisis as Protests Spread
More Than Half a Million Evacuated as Typhoon Kajiki Heads for Vietnam
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
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
×