London Daily

Focus on the big picture.
Saturday, May 31, 2025

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.
Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Trump Accuses China of Violating Trade Agreement
Gerry Adams Wins Libel Case Against BBC
Russia Accuses Serbia of Supplying Arms to Ukraine
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
Chinese Woman Dies After Being Forced to Visit Bank Despite Critical Illness
President Trump Grants Full Pardons to Reality TV Stars Todd and Julie Chrisley
Texas Enacts App Store Accountability Act Mandating Age Verification
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Vatican Calls for Sustainable Tourism in 2025 Message
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Trump Threatens 25% Tariff on iPhones Amid Dispute with Apple CEO
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
Liverpool Car Ramming Incident Leaves Multiple Injured
Australia Faces Immigration Debate Following Labor Party Victory
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
Macron Dismisses Viral Video of Wife's Gesture as Playful Banter
Cleveland Clinic Study Questions Effectiveness of Recent Flu Vaccine
Netanyahu Accuses Starmer of Siding with Hamas
Junior Doctors Threaten Strike Over 4% Pay Offer
Labour MPs Urge Chancellor to Tax Wealthy Over Cutting Welfare
Publication of UK Child Poverty Strategy Delayed Until Autumn
France Detains UK Fishing Vessel Amid Post-Brexit Tensions
Calls Grow to Resume Syrian Asylum Claims in UK
Nigel Farage Pledges to Reinstate Winter Fuel Payments
Boris and Carrie Johnson Welcome Daughter Poppy
×