Voluntarily bypasses many security and product registration laws
An unregistered trading platform puts thousands of investors ’money at risk
NEW YORK – New York Attorney General Letitia James today took legal action to shut down an illegally operating cryptocurrency trading platform that has attracted thousands of investors across the country out of more than $ 1 million. In a lawsuit filed against Coinseed, Inc. – owner and operator of a virtual currency trading platform – and its two chief executives – founder and CEO Delgerdalai Davaasambu and Chief Financial Officer Sukhbat Lkhagvadorj – Attorney General James is trying to stop his forced Coinseed and the two separate defenders from no longer operating as brokers of unregistered commodity brokers through their mobile application, as well as investments of cryptocurrency without Coinseed value, the CSD token. Millions across the country and the world today use cryptocurrencies as decentralized digital currencies – unlike the real money of a regulated government, including the U.S. dollar – to buy goods and services. , often anonymously, through secure online transactions. In today’s lawsuit, Attorney General James alleges that Coinseed and the individual defendants illegally traded cryptocurrencies, such as Bitcoin, without being a registered broker buyer in New York, while at the same time failing certain fees associated with trading significant currencies on behalf of their investor. .
“Unregulated and counterfeit money, no matter how big or small, will not be accepted in New York,” they said. Attorney General James. “For more than three years, Coinseed and his executives violated New York state laws illegally and unlawfully, but the physical greed that Coinseed committed while doing so fraud against thousands of investors is now coming to an end. This lawsuit should send a clear message to everyone who trades cryptocurrencies that my office will work hard to ensure transparency and fairness in the market and not delay it. protect investors’ wallets against everyone who tries to deceive them. ”
Today’s lawsuit – filed in the New York County Supreme Court – alleges that the defendants attempted to fund their fraudulent company by raising money in unlisted securities offerings and enticing investors with false claims about their professional experiences and the role of their management team. Coinseed stopped investors from buying their CSD token by violating New York laws that required complete and factual disclosures, as would be necessary for those offering any traditional securities offer. other.
Attorney General James alleges, in the complaint, that the defendants, while advertising low fees for the mobile application trading platform, adding an unpublished signal to the nominal price to remove additional fees from investors. In addition, Attorney General James charges Coinseed and the additional defendants by making an unregistered securities offer in the form of a coin offer (ICO) for CSD. , as well as never registering to trade any cryptocurrency within or from New York state.
Attorney General James specifically accuses Coinseed and the two officers of violating the Martin Act of New York and the New York Rule of Laws § 63 (12). Attorney General James seeks retaliation for thousands of fraudulent investors, disregard for money already raised with interest, permanent ban against defenders to stop immediately on this illegal behavior, and an officer-and-director bar against individual defenders Davaasambu and Lkhagvadorj and a bar against Coinseed prohibiting them from participating in any future secure donations or as commodity broker dealers. Attorney General James will also seek a complete closure of Coinseed’s business activity.
This case was investigated in parallel with the U.S. Securities and Exchange Commission (SEC), which, today, filed a similar but separate action against Coinseed. Attorney General James wishes to thank the SEC for their cooperation in this case.
The case is being handled by Deputy Attorneys Brian M. Whitehurst and Amita Singh from the Bureau of Investor Protection, and Chief Enforcement Advisor for Economic Justice Kevin Wallace, supported by Legal Assistant Charmaine Blake. The Bureau of Investor Protection is headed by Bureau Chief Peter Pope and Bureau Deputy Chief Shamiso Maswoswe, and is part of the Department for Economic Justice, headed by the Deputy Deputy Governor- Chris Chris D’Angelo and First Deputy Attorney General Jennifer Levy.