Arab Press

بالشعب و للشعب
Saturday, Apr 27, 2024

NY Attorney General Seeks to Shut Down Cryptocurrency Trading Platform

NY Attorney General Seeks to Shut Down Cryptocurrency Trading Platform

Coinseed is accused of ‘depleting accounts,’ and transferring funds to an offshore, unregulated platform.
New York Attorney General Letitia James has filed for a temporary restraining order, a preliminary injunction, and the appointment of a receiver to stop what she said are the “continued illegal and fraudulent operations” of cryptocurrency trading platform Coinseed.

In February, James filed a lawsuit against Coinseed, its CEO and founder Delgerdalai Davaasambuu, and its CFO Sukhbat Lkhagvadorj alleging fraud.

However, the New York Attorney General’s office says the company and its leaders have continued their fraud and that there has been new fraudulent conduct since the suit was filed. It said its request is necessary to immediately block any additional unauthorized trades.

“Three months ago, we filed this case against Coinseed and its executives alleging that they violated New York state laws and illegally squandered investors’ monies,” James said in a statement. “However, in the months since we filed our suit, the greed perpetrated by Coinseed and its CEO has not only continued, but grown.”

She added that Coinseed “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.”

James said that, since February, her office has received more than 130 complaints from investors who are worried they’ll lose their assets. She said investors who had portfolios worth more than $150,000 are now unable to withdraw those funds.

The complaint also alleged that Coinseed moved every investors’ holdings into the volatile Dogecoin cryptocurrency without their authorization. Additionally, investors have complained that their ability to trade in their accounts, withdraw their funds, or otherwise avoid further losses has been completely cut off.

The lawsuit alleges Coinseed defrauded thousands of investors out of more than $1 million and that the firm and its executives were unlawfully trading cryptocurrencies such as Bitcoin without being a registered broker/dealer (B/D) in New York, while at the same time not disclosing certain fees.

“For over three years, Coinseed and its executives flagrantly and illegally violated New York state laws,” James said when the lawsuit was filed in New York County State Supreme Court.

The suit accuses the company of seeking to finance its operation by raising funds in an unregistered securities offering and luring in investors with false claims about the executives’ professional experiences and the role of their management team. It also alleges Coinseed scammed investors into purchasing their token by violating New York laws requiring complete and truthful disclosures.

Additionally, Coinseed is accused of advertising low fees for its mobile application trading platform while adding an undisclosed markup to the quoted price to extract additional fees from investors. Coinseed was also charged with conducting an unregistered securities offering in the form of an initial coin offering (ICO) and for not registering to trade cryptocurrency within or from New York state.

James is seeking restitution for the allegedly defrauded investors, disgorgement of already raised funds with interest, permanent injunctions against all defendants, and an officer-and-director bar against Davaasambuu and Lkhagvadorj, as well as a bar prohibiting Coinseed from participating in any future securities offerings or as commodities broker/dealers.
Newsletter

Related Articles

Arab Press
0:00
0:00
Close
China Criticizes US for Vetoing UN Ceasefire Resolution in Gaza
Saudi Arabia ranks first in UN index for e-government services in MENA
Israel Records 20% Drop In GDP, War In Gaza Is The Reason
Saudi Arabia's FDI Inflows Grow with New International Standards
Venture Capitals Power Up Across MENA Region
PM Modi Announces Opening Of New CBSE Office In Dubai
January Funding for MENA Startups Totals $86.5 Million
Saudi Arabia accelerates digital economy growth through Nvidia partnership
Israel unveils tunnels underneath Gaza City headquarters of UN agency for Palestinian refugees
Israel deploys new military AI in Gaza war
Egypt threatens to suspend key peace treaty if Israel pushes into Gaza border town, officials say
Saudi Arabia Warns Of A "Humanitarian Catastrophe" If Israel Moves On Rafah
US University To Shut Qatar Campus Due To "Heightened Mideast Instability"
Facebook and Instagram Ban Iran's Supreme Leader
Defense Technology Showcase Held in Riyadh
Saudi Arabia’s non-oil exports rise 2.5% to $6bn in November 2023: GASTAT
Rolls-Royce Executive Encourages Saudi Women to Tap into Their Inner 'Superhero' for Success in Defense Industry
Saudi Arabia launches National Academy of Vehicles and Cars
Saudi Tourism Minister Reveals Plan for 250,000 New Hotel Rooms by 2030
SAR to more than double eastern network passenger capacity with new trains deal
Saudi Arabia Enhances National Defense with New Partnerships
Saudi Aramco Maintains Arab Light Crude Pricing to Asia for March
NEOM Establishes New York Office to Support Investors
Saudi Wealth Fund Draws in Over $25 Billion Worth of Investments in Three Years, Al-Rumayyan Reveals
The Saudi Kingdom's Ultimatum to Israel: A Win-Win Peace with Saudi Arabia and the Arab World, or a Lose-Lose Continued Occupation and Endless Conflict
Biden condemns anti-Arab hate after WSJ opinion piece calls Dearborn ‘jihad capital’
Turkey Releases Seven Hostages Captured by Pro-Gaza Gunman
Arab Parliament Commends Women's Contributions to Societal Development
British and Hungarian Foreign Ministers visited Lebanese leaders to stress the importance of enacting UN Resolution 1701
Yemen's Houthis Say They Targeted British Merchant Vessel In Red Sea
Donald Trump Nominated for Nobel Peace Prize for 'Historic' Middle East Policy
US lawmakers approve F-16 jet sale to Turkey following NATO expansion support
Saudi Arabia Climbs 25 Places in World Bank's National Statistics Indicator
Tourism Growth in Saudi Arabia Fuels Advancements in the Hospitality Industry," Says Rotana Official
Houthi Rebels Request Departure of UN Staff from Yemen, Including US and UK Personnel, within a Month
Modi Inaugurates Hindu Temple on Site of Demolished Mosque in India
Over 25,000 Deaths in Gaza Amid Israeli Offensive
Escalating Clashes in Gaza as Israel Distributes Leaflets to Assist in Locating Hostages
Turkey's First Astronaut Set to Launch for International Space Station Today
Head of Palestinian Investment Fund Warns More People May Die of Hunger Than War in Gaza
Palestinian Envoy Criticizes UK for Alleged 'Double Standards' in Policies Toward Israel
Morocco to Lead UN Human Rights Council in 2024
Is artificial intelligence the solution to cyber security threats?
Egypt has been identified as the leading military force among Arab nations and ranks 15th globally
The AI Revolution in the Workforce: CEOs at Davos Predict Major Job Cuts in 2024
Iranian Nobel Laureate Narges Mohammadi Receives Additional Prison Sentence
"Gazans Urge Israeli Forces to Target Hamas in Leaked Audio"
Biden States US and UK Airstrikes on Houthis Were a 'Defensive Action
Large Pro-Palestine Rally in London as Gaza Conflict Hits Day 100
South Africa Urges World Court to Halt Israeli Actions in Gaza
×