Attorney General James Seeks Court Order Immediately Halting Continued Fraud by Illegal Virtual Currency Trading Platform
Coinseed Has Continued to Put Thousands of Investors’ Money at Risk Despite Ongoing Lawsuit
NEW YORK – New York Attorney General Letitia James has taken legal action to immediately halt the continued illegal and fraudulent operations of the cryptocurrency trading platform Coinseed, Inc. In February, Attorney General James filed a lawsuit against Coinseed and its two top executives — including founder and Chief Executive Officer Delgerdalai Davaasambuu — but, since that time, Coinseed and its CEO have continued their fraud and the Office of the Attorney General (OAG) has learned of new fraudulent conduct. Late yesterday, Attorney General James filed a motion asking 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 investors’ monies.
“Unregulated and fraudulent virtual currency trading platforms have no place in New York, said Attorney General James. “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. However, in the months since we filed our suit, the greed perpetrated by Coinseed and its CEO has not only continued, but grown. This company has 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. We filed this motion to immediately halt Coinseed’s unlawful activity and protect the investments that are left.”
In the nearly three months since Attorney General James filed her lawsuit, her office has received over 130 complaints from investors who are concerned about protecting their assets due to Coinseed’s fraudulent conduct.
Yesterday’s motion asks the court to issue a temporary restraining order and a preliminary injunction, as well as to appoint a receiver to oversee all assets in an effort to safeguard investments as Attorney General James’ lawsuit proceeds.
The matter is being handled by Assistant Attorneys General Brian M. Whitehurst and Amita Singh of the Investor Protection Bureau, under the supervision of Bureau Chief Peter Pope and Deputy Bureau Chief Shamiso Maswoswe. The Investor Protection Bureau is a part of the Division for Economic Justice, which is overseen by Chief Deputy Attorney General Chris D’Angelo and First Deputy Attorney General Jennifer Levy.