Attorney General James Shuts Down Virtual Currency Trading Platform, Stops Cryptocurrency CEO From Prosecuting Fraudulent Conduct


Coinseed puts thousands of investor money at risk despite pending lawsuit

NEW YORK – New York Attorney General Letitia James today secured a judgment against virtual currency trading platform Coinseed, as well as founder and CEO Delgerdalai Davaasambuu, which is shutting down their operations for good illegal and fraudulent and sets up a permanent escrow to protect investor funds. The receiver also took control of the company’s website so that it could no longer be used in connection with the defendants’ fraudulent schemes. In addition, the court awarded a $ 3 million judgment against the defendants. In February, Attorney General James filed a lawsuit against Coinseed and its CEO for defrauding thousands of investors across the country with millions of dollars. In the months since the complaint was filed, Coinseed and its CEO continued their fraud and began further fraudulent behavior by trading investor accounts without authorization and then preventing investors from accessing those accounts.

In June, the New York State Supreme Court granted Attorney General James’ motion for a preliminary injunction and the appointment of a court-appointed temporary receiver with special powers to protect investments already made on the platform. -form of negotiation. Coinseed and its CEO defied this preliminary injunction by creating, offering and selling new virtual currency – including to New York investors – and did not respond to Attorney General James’ complaint.

“For years, Coinseed and its CEO have engaged in blatant and fraudulent activity which has deceived millions of investors,” said Attorney General James. “In defiance of court rulings, this company has continued to operate illegally and unethically, holding investor funds hostage and highlighting the dangers of investing in unregistered virtual currencies. We will continue to prosecute anyone who attempts to abuse and manipulate the system and ensure that investors are protected. ”

Since Attorney General James filed this complaint, the Attorney General’s office has received more than 175 complaints from investors concerned about protecting their assets due to Coinseed’s fraudulent conduct. The judgment obtained by Attorney General James today permanently appoints the court receiver to obtain, protect and return all assets invested and traded through Coinseed and orders a pecuniary judgment against the defendants in the amount of $ 3,061,511 , both together and separately. Investors who are victims of Coinseed fraud should contact the court-appointed receiver at [email protected] for information on their ability to request funds.

The case is being handled by Deputy Attorneys General Brian M. Whitehurst and Amita Singh of the Investor Protection Bureau, under the supervision of Acting Office Chief Scott J. Spiegelman, Acting Deputy Office Chief Shamiso Maswoswe and the former office manager Peter Pope. The Investor Protection Office is part of the Economic Justice Division, which is overseen by Chief Deputy Attorney General Chris D’Angelo and Senior Deputy Attorney General Jennifer Levy.


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