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Cryptocurrency trading platform Coinseed is shutting down after being sued by New York Attorney General Letitia James earlier this year for fraud.
“I’m announcing that I am winding down the business due to a lawsuit from the NYAG,” Del Davaasambuu, Coinseed cofounder and CEO, said in a statement found on the landing page of the company website.
The saga began on February 17 when James filed a lawsuit against the company for defrauding investors out of more than $1 million via undisclosed fees and through the sale of “worthless” CSD tokens, Coinseed’s cryptocurrency.
On May 6, James took legal action to halt operations of Coinseed, alleging that the company allocated investors’ money into dogecoin without permission.
According to a filing, Coinseed on April 16 converted all investor assets into bitcoin “without notice or authorization” and disabled all functionality in the application so that they will not be able to withdraw their money….