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Coinseed was shut down by the New York Attorney General for illegally converting client money into DOGE

Following accusations that customer money was changed to DOGE without their knowledge. New York Attorney General Letitia James shut down the activities of Coinseed.

The NYAG’s wins case against Coinseed

The New York Attorney General has won a case against cryptocurrency exchange Coinseed. For misleading its clients and transactions with Dogecoin. According to Bloomberg, the exchange also emptied its bank accounts and issued unregistered securities.

Despite earlier court orders requiring Coinseed to halt operations. James concluded that the firm continued to engage in “egregious and fraudulent activities” while the case was pending:

“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.”

Following a temporary restraining order, the exchange allegedly shut down its operations in June.

Defrauding investors

In February, James sued Coinseed and its creator, Delgerdalai Davaasambufor, alleging that they defrauded hundreds of investors out of over $1 million. The SEC filed a lawsuit against the business for allegedly trading commodities. Additionally, without registering as a broker-dealer and misleading investors in the same month.

Since February, Assistant Attorneys General Brian Whitehurst and Amita Singh have received 170 complaints from Coinseed users. These complaints state that their wallet balances have dropped by “tens of thousands of dollars.”

Since February, Assistant Attorneys General Brian Whitehurst and Amita Singh have received 170 complaints from Coinseed users that their wallet balances have dropped by “tens of thousands of dollars.”

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