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The New York attorney general and the U.S. Securities and Exchange Commission (SEC) have filed charges against a cryptocurrency trading platform that allegedly defrauded thousands of investors out of over a million dollars.<\/strong><\/p>\n New York Attorney General Letitia James took legal action Wednesday to shut down the cryptocurrency trading platform owned and operated by Coinseed Inc. The lawsuit, filed in New York County State Supreme Court, alleges that Coinseed runs \u201can illegally operating cryptocurrency trading platform that defrauded thousands of investors across the nation out of more than $1 million.\u201d<\/p>\n The suit names Coinseed Inc., its founder and CEO Delgerdalai Davaasambuu, and its chief financial officer Sukhbat Lkhagvadorj as defendants.<\/p>\n According to the announcement by the New York attorney general\u2019s office, \u201cAttorney General James sues to shut down\u201d the crypto trading platform and \u201cto recoup defrauded funds for thousands of investors.\u201d Noting that \u201cCoinseed willfully ignored numerous securities and commodities registration laws,\u201d the announcement elaborates:<\/p>\n Attorney General James seeks to stop Coinseed and the two individual defendants from further operating as unregistered commodities broker-dealers through their mobile application, as well as return investments of Coinseed\u2019s worthless cryptocurrency, the CSD token.<\/p>\n<\/blockquote>\n The attorney general alleges \u201cCoinseed and the individual defendants were unlawfully trading cryptocurrencies, like bitcoin, without being a registered broker-dealer in New York, while simultaneously failing to disclose certain fees associated with the trading of virtual currencies on their investor\u2019s behalf.\u201d<\/p>\n <\/ins> <\/ins> <\/p>\n The lawsuit further alleges that \u201cthe defendants sought to finance their fraudulent company by raising funds in an unregistered securities offering and luring in investors with false claims about their professional experiences and the role of their management team.\u201d The token sale took place approximately between December 2017 and May 2018. Hundreds of investors participated, including those in the U.S.<\/p>\n On the same day, the SEC announced that it has filed charges against Coinseed Inc. and its CEO for registration violations in connection with the company\u2019s offer and sale of digital asset securities. \u201cThe SEC seeks permanent injunctive relief, disgorgement plus prejudgment interest, and civil penalties,\u201d the regulator detailed.<\/p>\nUS Regulators Allege Coinseed Operates Illegal Crypto Trading Platform<\/h2>\n
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