{"id":107323,"date":"2021-02-17T20:17:13","date_gmt":"2021-02-17T20:17:13","guid":{"rendered":"https:\/\/fin2me.com\/?p=107323"},"modified":"2021-02-17T20:17:13","modified_gmt":"2021-02-17T20:17:13","slug":"new-york-sues-to-shut-down-fraudulent-coinseed-crypto-platform-sec-also-sues","status":"publish","type":"post","link":"https:\/\/fin2me.com\/markets\/new-york-sues-to-shut-down-fraudulent-coinseed-crypto-platform-sec-also-sues\/","title":{"rendered":"New York sues to shut down 'fraudulent' Coinseed crypto platform, SEC also sues"},"content":{"rendered":"

NEW YORK (Reuters) – New York\u2019s attorney general filed a lawsuit on Wednesday to shut down the cryptocurrency platform Coinseed Inc for allegedly defrauding thousands of investors, including by charging hidden trading fees and selling \u201cworthless\u201d digital tokens.<\/p>

FILE PHOTO: New York State Attorney General Letitia James in New York City, U.S., November 19, 2019. REUTERS\/Lucas Jackson<\/figcaption>

Attorney General Letitia James said Coinseed traded cryptocurrencies such as bitcoin without registering as a broker-dealer, and sold \u201cCSD\u201d tokens without authorization to raise money for its mobile application startup.<\/p>\n

James also sued Coinseed Chief Executive Delgerdalai Davaasambuu and Chief Financial Officer Sukhbat Lkhagvadorj, saying they overstated the midtown Manhattan-based company\u2019s management experience, while Lkhagvadorj misrepresented himself as a former Wall Street trader.<\/p>\n

Coinseed\u2019s fraud totaled more than $1 million, according to James, who is also seeking restitution for investors.<\/p>\n

The U.S. Securities and Exchange Commission filed a related lawsuit against Coinseed and Davaasambuu over the tokens, which both regulators said were sold from December 2017 to May 2018.<\/p>\n

Coinseed did not immediately respond to requests for comment. Both defendants have residences in Long Island City, New York, but Davaasambuu has expressed an intention to return to his native Mongolia, James said.<\/p>\n

\u201cUnregulated and fraudulent virtual currency entities, no matter how big or small, will no longer be tolerated in New York,\u201d James said in a statement.<\/p>\n

The attorney general said Coinseed had touted the CSD token as \u201ca great opportunity for young people who want to make money in the crypto market,\u201d and that the mobile app was \u201cguaranteed\u201d to help push its market value higher.<\/p>\n

\u201cIn truth, nearly three years later, the CSD token has not been listed anywhere,\u201d her lawsuit said.<\/p>\n

James\u2019 lawsuit in Manhattan Supreme Court alleged violations of the Martin Act, a New York state securities law. The SEC\u2019s lawsuit is in Manhattan federal court.<\/p>\n

Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

NEW YORK (Reuters) – New York\u2019s attorney general filed a lawsuit on Wednesday to shut down the cryptocurrency platform Coinseed Inc for allegedly defrauding thousands […]<\/p>\n","protected":false},"author":3,"featured_media":107322,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"\nNew York sues to shut down 'fraudulent' Coinseed crypto platform, SEC also sues - Fin2me<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fin2me.com\/markets\/new-york-sues-to-shut-down-fraudulent-coinseed-crypto-platform-sec-also-sues\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"New York sues to shut down 'fraudulent' Coinseed crypto platform, SEC also sues - Fin2me\" \/>\n<meta property=\"og:description\" content=\"NEW YORK (Reuters) – New York\u2019s attorney general filed a lawsuit on Wednesday to shut down the cryptocurrency platform Coinseed Inc for allegedly defrauding thousands [...]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/fin2me.com\/markets\/new-york-sues-to-shut-down-fraudulent-coinseed-crypto-platform-sec-also-sues\/\" \/>\n<meta property=\"og:site_name\" content=\"Fin2me\" \/>\n<meta property=\"article:published_time\" content=\"2021-02-17T20:17:13+00:00\" \/>\n<meta name=\"author\" content=\"Mark\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/fin2me.com\/wp-content\/uploads\/2021\/02\/cnewsfotor13.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mark\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/fin2me.com\/markets\/new-york-sues-to-shut-down-fraudulent-coinseed-crypto-platform-sec-also-sues\/\",\"url\":\"https:\/\/fin2me.com\/markets\/new-york-sues-to-shut-down-fraudulent-coinseed-crypto-platform-sec-also-sues\/\",\"name\":\"New York sues to shut down 'fraudulent' Coinseed crypto platform, SEC also sues - 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