New York Attorney General Letitia James is seeking a court order to immediately shut down the operations of cryptocurrency exchange Coinseed. The attorney general previously filed a lawsuit against the crypto exchange but the platform allegedly continued to operate and dupe investors.
US Authorities Take Urgent Action Against Coinseed
The Office of Attorney General Letitia James announced Friday that the attorney general â€œhas taken legal action to immediately halt the continued illegal and fraudulent operations of the cryptocurrency trading platform Coinseed Inc.â€
A motion was filed late Thursday â€œasking the court for a temporary restraining order, a preliminary injunction, and the appointment of a receiver to immediately block Coinseed and its CEO from making any further unauthorized trades and safeguarding investorsâ€™ monies,â€ the notice reads. The receiver will â€œoversee all assets in an effort to safeguard investments as Attorney General Jamesâ€™ lawsuit proceeds.â€
James filed a lawsuit in February against Coinseed and its two top executives, including founder and CEO Delgerdalai Davaasambuu. They allegedly â€œviolated New York state laws and illegally squandered investorsâ€™ monies.â€
However, in the months since the lawsuit was filed, â€œthe greed perpetrated by Coinseed and its CEO has not only continued, but grown,â€ the announcement describes, adding that â€œCoinseed and its CEO have continued their fraud and the Office of the Attorney General (OAG) has learned of new fraudulent conduct.â€ Within the last three months, the OAG â€œhas received over 130 complaints from investors who are concerned about protecting their assets due to Coinseedâ€™s fraudulent conduct.â€ According to the lawsuit filed, the platform allegedly â€œdefrauded thousands of investors across the nation.â€
The attorney general elaborated:
â€œWe filed this motion to immediately halt Coinseedâ€™s unlawful activity and protect the investments that are left,â€ she concluded.
What do you think about the NY attorney generalâ€™s action against Coinseed crypto exchange? Let us know in the comments section below.
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