New York Attorney General Letitia James has obtained a court order to close the cryptocurrency exchange Coinseed. The order also “permanently appoints court receivers to acquire, protect and return all assets invested and traded through” the exchange.

New York Attorney General Letitia James shuts down cryptocurrency exchanges

The office of the New York Attorney General Letitia James announced on Monday that the attorney general has shut down the cryptocurrency trading platform Coinseed.

The announcement stated that James had obtained a verdict against Coinseed and its founder and CEO Delgerdalai Davaasambuu, “this will permanently stop their illegal and fraudulent business”, adding:

The judgment guaranteed by Attorney General James today will permanently appoint a court receiver to acquire, protect and return all assets invested and traded through Coinseed, and order a monetary judgment of US$3,061,511 against the defendant, including joint and separate.

Attorney General James filed a lawsuit against Coinseed in February, alleging that Delgerdalai Davaasambuu, the CEO of Coinseed in the United States, and Sukhbat Lkhagvadorj, the chief financial officer, are also defendants in the lawsuit.

The Office of the Attorney General further disclosed that since the lawsuit was filed, it has received more than 175 complaints from investors against the exchange.

The announcement stated that despite the legal actions taken, Coinseed and its CEO “continued their fraudulent activities and started more fraudulent activities by trading investor accounts without permission and then preventing investors from accessing these accounts”.

In June, the New York County Supreme Court approved James’ preliminary injunction motion. However, Coinseed and its CEO “disregarded the preliminary injunction by creating, offering and selling a new virtual currency-including to investors in New York-and failed to respond to the complaint of Attorney General James.”

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Attorney General James believes:

Over the years, Coinseed and its CEO have engaged in shocking fraudulent activities that defrauded millions of investors. The company ignored court orders and continued to operate illegally and unethically, holding investors’ funds as hostages, and emphasizing the danger of investing in unregistered virtual currencies.

What do you think of the New York Attorney General Letitia James shutting down Coinseed? Let us know in the comments section below.

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