Cryptocurrency trading platform Coinseed is shutting down following a recent lawsuit by the New York State Attorney General.
Coinseed will close its operations soon
Cryptocurrency trading platforms are used to facing regulatory scrutiny in various parts of the world, mostly due to the regulator not fully understanding how crypto exchanges function. This has forced some of the platforms to either relocate to more friendly jurisdictions or shut down their services.
New York-based Coinseed is the next in line after the crypto trading firm revealed that it would shut down its operations following a recent lawsuit by the New York State Attorney General (NYAG). Coinseed CEO Delgerdalai Davaasambuu said, “I started Coinseed with the idea to create the next generation of crypto investing by making it easier to invest in cryptocurrencies. We were able to create and deliver the best version of what I imagined Coinseed to be. So it is with an incredibly heavy heart, today I’m announcing that I am winding down the business due to a lawsuit from the NYAG.”
Attorney general Letitia James accused the crypto trading platform and its executives of defrauding investors of over $1 million and breaking United States laws in the process. The NYAG went on to file a court order last month, seeking to freeze Coinseed’s trading activity and stop all its operations. Yesterday, the NYAG obtained the court order to block the crypto trading platform’s activities and ensure the protection of investors’ funds.
The CEO said he is not sad and frustrated that he has to shut down Coinseed. He maintains that the crypto trading platform hasn’t done anything wrong, and Coinseed made a serious mistake by basing in New York.
Coinseed to refund investors
The exchange said it would return user funds to them. “As for the user funds, it will be returned soon, and we’re interviewing law firms to hire for the matter. They will reach out to you before long. However, please annoy the NYAG as much as you can since they are the people who caused all the mess. Call them, email them, write letters to them, curse them. The more, the better,” the CEO added.
The NYAG revealed that it has received over 170 complaints from concerned investors regarding the safety of their assets following Coinseed’s alleged fraudulent activities.