NY judge shuts down crypto platform Coinseed, orders $3M payout

Coinseed logo
Photo credit Coinseed

NEW YORK (1010 WINS) — A New York judge has ordered the cryptocurrency platform Coinseed to permanently shut down and pay $3 million to defrauded investors.

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The order ends a lengthy legal battle between the Manhattan-based Coinseed, its CEO, Delgerdalai Davaasambuu and Attorney General Letitia James, who flagged the company as unregistered commodity traders who blocked investors from their accounts.

“For years, Coinseed and its CEO have engaged in egregious and fraudulent activities that have cheated investors out of millions,” James said in a statement.

“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,” she added.

The order, from New York State Supreme Court Justice Andrew Borrok, has also put in place a permanent receiver who has taken control of Coinseed’s website after James said the company defied a court-ordered preliminary injunction in June and continued to peddle unauthorized cryptocurrency.

Attorney General Letitia James
Attorney General Letitia James Photo credit David Dee Delgado/Getty Images

As that order came down, Coinseed announced they would be giving away free “f--k Letitia James” tokens.

James sued the company back in February, saying it fraudulently sold “worthless” cryptocurrency and hid trading fees it charged investors.

Since the lawsuit, James said her office had received more than 175 complaints from Coinseed investors over the company’s actions.

As that order came down, Coinseed announced on Twitter they would be giving away free “f--k Letitia James” tokens.

James sued the company back in February, saying it fraudulently sold “worthless” cryptocurrency and hid trading fees it charged investors.

Since the lawsuit, James said her office had received more than 175 complaints from Coinseed investors over the company’s actions.