The Attorney General of New York and the United States Securities and Exchange Commission (SEC) have filed a lawsuit against a cryptocurrency trading platform that allegedly defrauded thousands of investors for more than one million U.S. dollars.

U.S. regulator accused the defendant of operating an illegal cryptocurrency trading platform

New York Attorney General Letitia James took legal action on Wednesday to shut down the cryptocurrency trading platform owned and operated by Coinseed Inc. The lawsuit was filed in the Supreme Court of New York County, accusing Coinseed of operating “an illegally operated cryptocurrency trading platform that defrauded thousands of people.” Among investors with more than 1 million U.S. dollars across the country. “

The lawsuit lists Coinseed Inc., its founder and CEO Delgerdalai Davaasambuu, and its chief financial officer Sukhbat Lkhagvadorj as defendants.

According to an announcement by the New York Attorney General’s Office, “Attorney General James sued to shut down crypto trading platforms and “recover fraudulent funds for thousands of investors.” The announcement stated that “Coinseed deliberately ignored many securities and commodity registration laws,” details Description:

Attorney General James (James) tried to prevent Coinseed and the two separate defendants from further acting as unregistered commodity broker-dealers through their mobile app and Coinseed’s worthless cryptocurrency CSD token repurchase investment.

The attorney general stated: “The defendant and individual defendants are illegally trading cryptocurrencies like Bitcoin, without registering a broker-dealer in New York, and at the same time failing to disclose certain fees related to virtual currency transactions for investors.”

The lawsuit also alleges that “the defendant tried to raise funds in an unregistered securities issuance and falsely claimed its professional experience and management team’s role to fund its fraudulent company.” The token sale was about December 2017 Between September and May 2018. Hundreds of investors participated, including American investors.

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The SEC announced on the same day that it had filed a lawsuit against Coinseed Inc. and its CEO, accusing it of violating the company’s registration requirements for the provision and sale of digital asset securities. The regulator detailed: “The SEC seeks permanent injunctive relief, illegal gains, pre-judgment interest and civil penalties,”.

What do you think of the allegations against Coinseed? Let us know in the comments section below.

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