Coinseed is a crypto investment platform that enabled micro-investing in cryptocurrency assets for its users. However, it has to shut down its operations amid the NYAG lawsuit. Delgerdalai Davaasambuu is the founder and CEO of Coinseed.
Announced in Website
He announced the decision through a statement on the platform’s website. Davaasambuu gave the details on his decision to shut the business. He said that it is with a hefty heart that he is announcing the winding down of the business due to the lawsuit.
Cointelegraph previous reports
According to Cointelegraph’s previous reports, the office of the New York State attorney general brought fraud charges against Coinseed back in February. During that period, the New York attorney general accused Coinseed of misleading investors. Moreover, Coinseed made the sale of unlicensed securities to the tune of more than $1 million, according to a report.
The New York attorney generals’ legal assault
The New York attorney generals’ legal assault on Coinseed was based on alleged violations of the Martin Act, a New York anti-fraud law. Under the New York State attorney general Letitia James, the office used the Martin Act to pursue crypto exchange Bitfinex and stablecoin issuer Tether.
Coinseed closure
Davaasambuu gave a message in a post on his website. The Coinseed closure came as the company no longer has access to payment providers following the lawsuit. Moreover, he promised to return the user funds at a later date. He also revealed an ERC-20 token which seemingly created to spite James as a part of the closure announcement.
