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NY Attorney General Shuts Down Crypto Trading Platform That Defrauded Investors Millions Bitcoin News

New York Attorney General Letitia James has obtained a court order to shut down cryptocurrency exchange Coinseed. The order also “permanently appoints the receiver of the court to receive, safeguard and return all assets invested and traded through the exchange”.

New York Attorney General Letitia James Shuts Down Crypto Exchange

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

The announcement states that James has secured a judgment against Coinseed and its founder and CEO, Delgerdalai Dawasambu, “which permanently halts their illegal and fraudulent operations.”

The judgment secured by Attorney General James today permanently appoints the Court Receiver to receive, secure and return all assets invested and traded through Coinseed and against the defendants together in the amount of $3,061,511 and Separate money orders judgment.

Attorney General James filed a lawsuit against Coinseed in February for defrauding thousands of investors from US Coinseed CEO Delgerdalai Dawasambu and CFO Sukhbat Lakhgavdorj.

The Attorney General’s office further disclosed that since filing the lawsuit, it has received more than 175 complaints from investors about the exchange.

Despite the legal action, Coinseed and its CEO “continued their fraud and began additional fraudulent conduct by trading in investors’ accounts without permission and then blocking investors from accessing those accounts,” the announcement notes.

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

Attorney General James said:

Over the years, Coinseed and its CEO have engaged in serious and fraudulent activities that have defrauded investors out of millions. In defiance of court orders, this company has continued to operate illegally and unethically, holding investors’ funds hostage and underscoring the dangers of investing in unregistered virtual currencies.

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

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