US Authorities Seek Court Order to Shut Down Crypto Trading
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 “has taken legal action to immediately halt
the continued illegal and fraudulent operations of the cryptocurrency trading
platform Coinseed Inc.”
A motion was filed late Thursday “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,” the notice reads. The
receiver will “oversee all assets in an effort to safeguard investments as
Attorney General James’ lawsuit proceeds.”
James filed a lawsuit in February against Coinseed and its
two top executives, including founder and CEO Delgerdalai Davaasambuu. They
allegedly “violated New York state laws and illegally squandered investors’
monies.”
However, in the months since the lawsuit was filed, “the
greed perpetrated by Coinseed and its CEO has not only continued, but grown,”
the announcement describes, adding that “Coinseed and its CEO have continued
their fraud and the Office of the Attorney General (OAG) has learned of new
fraudulent conduct.” Within the last three months, the OAG “has received over
130 complaints from investors who are concerned about protecting their assets
due to Coinseed’s fraudulent conduct.” According to the lawsuit filed, the
platform allegedly “defrauded thousands of investors across the nation.”
The attorney general elaborated:
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,” she concluded.
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