New York attorney general Letitia James has received a court order to shut down the Coinseed cryptocurrency exchange. The resolution also permanently appoints the court administrator to receive, secure and return all assets invested and traded on the exchange.
New York attorney general Letitia James closes crypto exchange
New York Attorney General Letitia James’s office announced on Monday that the Attorney General’s Office has shut down the Coinseed cryptocurrency trading platform.
James has obtained a ruling against Coinseed and its founder and CEO Delgerdalai Davaasambuu “that will permanently stop their illegal and fraudulent operations,” the announcement said, adding:
The verdict obtained today by Attorney General James permanently appoints the court administrator to receive, secure and return all assets invested and traded through Coinseed and orders a monetary verdict against the defendants for $ 3,061,511 both collectively and separately.
Attorney General James filed a lawsuit against Coinseed in February for fraud against thousands of US investors. Coinseed CEO Delgerdalai Davaasambuu and CFO Sukhbat Lkhagvadorj were also defendants in the lawsuit.
The attorney general said it has received more than 175 complaints from investors about the stock market since the lawsuit was filed.
Despite legal action, Coinseed and its CEO “continued their scam and started additional fraudulent behavior by trading investor accounts without permission and then banning investors from accessing those accounts,” the announcement said.
In June, the New York State Supreme Court granted James’ application for an injunction. Coinseed and its CEO “opposed this injunction by creating, offering and selling a new virtual currency – including to New York investors – and did not respond to Attorney General James’ complaint.”
Attorney General James said:
Coinseed and its CEO have been engaging in outrageous and fraudulent activities for years that have scammed investors out of millions. Despite court orders, this company has continued to act illegally and unethically, holding investors’ funds hostage, and highlighting the dangers of investing in unregistered virtual currencies.
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