Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

NY Attorney General Seeks to Shut Down Cryptocurrency Trading Platform

NY Attorney General Seeks to Shut Down Cryptocurrency Trading Platform

Coinseed is accused of ‘depleting accounts,’ and transferring funds to an offshore, unregulated platform.
New York Attorney General Letitia James has filed for a temporary restraining order, a preliminary injunction, and the appointment of a receiver to stop what she said are the “continued illegal and fraudulent operations” of cryptocurrency trading platform Coinseed.

In February, James filed a lawsuit against Coinseed, its CEO and founder Delgerdalai Davaasambuu, and its CFO Sukhbat Lkhagvadorj alleging fraud.

However, the New York Attorney General’s office says the company and its leaders have continued their fraud and that there has been new fraudulent conduct since the suit was filed. It said its request is necessary to immediately block any additional unauthorized trades.

“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,” James said in a statement. “However, in the months since we filed our suit, the greed perpetrated by Coinseed and its CEO has not only continued, but grown.”

She added that Coinseed “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.”

James said that, since February, her office has received more than 130 complaints from investors who are worried they’ll lose their assets. She said investors who had portfolios worth more than $150,000 are now unable to withdraw those funds.

The complaint also alleged that Coinseed moved every investors’ holdings into the volatile Dogecoin cryptocurrency without their authorization. Additionally, investors have complained that their ability to trade in their accounts, withdraw their funds, or otherwise avoid further losses has been completely cut off.

The lawsuit alleges Coinseed defrauded thousands of investors out of more than $1 million and that the firm and its executives were unlawfully trading cryptocurrencies such as Bitcoin without being a registered broker/dealer (B/D) in New York, while at the same time not disclosing certain fees.

“For over three years, Coinseed and its executives flagrantly and illegally violated New York state laws,” James said when the lawsuit was filed in New York County State Supreme Court.

The suit accuses the company of seeking to finance its operation by raising funds in an unregistered securities offering and luring in investors with false claims about the executives’ professional experiences and the role of their management team. It also alleges Coinseed scammed investors into purchasing their token by violating New York laws requiring complete and truthful disclosures.

Additionally, Coinseed is accused of advertising low fees for its mobile application trading platform while adding an undisclosed markup to the quoted price to extract additional fees from investors. Coinseed was also charged with conducting an unregistered securities offering in the form of an initial coin offering (ICO) and for not registering to trade cryptocurrency within or from New York state.

James is seeking restitution for the allegedly defrauded investors, disgorgement of already raised funds with interest, permanent injunctions against all defendants, and an officer-and-director bar against Davaasambuu and Lkhagvadorj, as well as a bar prohibiting Coinseed from participating in any future securities offerings or as commodities broker/dealers.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
House Republicans Move to Defund OECD Over Global Tax Dispute
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
Intel Reports Revenue Beats but Sees 81% Rise in Losses
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
CEO Resigns Amid Controversy Over Relationship with HR Executive
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
Tulsi Gabbard Unveils Evidence Alleging Political Manipulation of Intelligence During Trump Administration
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Trump Announces Coca-Cola to Shift to Cane Sugar in U.S. Production
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Air India Pilot’s Mental Health Records Under Scrutiny
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
Moonshot AI Unveils Kimi K2: A New Open-Source AI Model
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Bitcoin Reaches New Milestone of $116,000
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
×