Beautiful Virgin Islands

Wednesday, Mar 04, 2026

NY Attorney General Seeks to Shut Down Cryptocurrency Trading Platform

NY Attorney General Seeks to Shut Down Cryptocurrency Trading Platform

Coinseed is accused of ‘depleting accounts,’ and transferring funds to an offshore, unregulated platform.
New York Attorney General Letitia James has filed for a temporary restraining order, a preliminary injunction, and the appointment of a receiver to stop what she said are the “continued illegal and fraudulent operations” of cryptocurrency trading platform Coinseed.

In February, James filed a lawsuit against Coinseed, its CEO and founder Delgerdalai Davaasambuu, and its CFO Sukhbat Lkhagvadorj alleging fraud.

However, the New York Attorney General’s office says the company and its leaders have continued their fraud and that there has been new fraudulent conduct since the suit was filed. It said its request is necessary to immediately block any additional unauthorized trades.

“Three months ago, we filed this case against Coinseed and its executives alleging that they violated New York state laws and illegally squandered investors’ monies,” James said in a statement. “However, in the months since we filed our suit, the greed perpetrated by Coinseed and its CEO has not only continued, but grown.”

She added that Coinseed “continued to operate illegally—holding investors’ funds hostage and conducting unauthorized trades in investors’ portfolios, while depleting accounts and transferring virtual currency to an offshore, unregulated trading platform.”

James said that, since February, her office has received more than 130 complaints from investors who are worried they’ll lose their assets. She said investors who had portfolios worth more than $150,000 are now unable to withdraw those funds.

The complaint also alleged that Coinseed moved every investors’ holdings into the volatile Dogecoin cryptocurrency without their authorization. Additionally, investors have complained that their ability to trade in their accounts, withdraw their funds, or otherwise avoid further losses has been completely cut off.

The lawsuit alleges Coinseed defrauded thousands of investors out of more than $1 million and that the firm and its executives were unlawfully trading cryptocurrencies such as Bitcoin without being a registered broker/dealer (B/D) in New York, while at the same time not disclosing certain fees.

“For over three years, Coinseed and its executives flagrantly and illegally violated New York state laws,” James said when the lawsuit was filed in New York County State Supreme Court.

The suit accuses the company of seeking to finance its operation by raising funds in an unregistered securities offering and luring in investors with false claims about the executives’ professional experiences and the role of their management team. It also alleges Coinseed scammed investors into purchasing their token by violating New York laws requiring complete and truthful disclosures.

Additionally, Coinseed is accused of advertising low fees for its mobile application trading platform while adding an undisclosed markup to the quoted price to extract additional fees from investors. Coinseed was also charged with conducting an unregistered securities offering in the form of an initial coin offering (ICO) and for not registering to trade cryptocurrency within or from New York state.

James is seeking restitution for the allegedly defrauded investors, disgorgement of already raised funds with interest, permanent injunctions against all defendants, and an officer-and-director bar against Davaasambuu and Lkhagvadorj, as well as a bar prohibiting Coinseed from participating in any future securities offerings or as commodities broker/dealers.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Reeves Stresses Stability and Fiscal Discipline in UK Budget Update as Growth Outlook Shifts
UK Deploys Royal Navy Destroyer HMS Dragon to Cyprus After Drone Strike on RAF Base
Green Party Surges Past Labour in New UK Poll as Traditional Party Support Crumbles
Majority of Britons Oppose U.S. Use of UK Military Bases in Iran Conflict
UK Intensifies Evacuation Efforts from Oman, Working with Airlines to Boost Flight Capacity
Trump Condemns UK and Spain in Unusually Sharp Rift Over Iran Military Action
Trump Repeats UK Claims That Diverge from Verified Facts Amid Diplomatic Strain
UK Arrests Prominent Figures Linked to Epstein Network as Questions Mount Over US Action
Trump Says UK ‘Took Far Too Long’ to Approve Use of Airbases for Iran Strikes
Scope of Britain’s Role in the Expanding Middle East Conflict Comes Under Scrutiny
Trump Says He Is ‘Very Disappointed’ in Starmer Over Iran Comments
U.S. Embassy in Riyadh Struck by Drones Amid Escalating Iran Conflict
Starmer Confronts Strategic Test After Drone Strike Near British Base in Cyprus
Rolls-Royce Chief Signals Openness to Germany Joining UK-Led Fighter Jet Programme
UK Stocks Slip as Escalating Iran Conflict Triggers Global Market Selloff
UK Overhauls Asylum System to Make Refugee Status Temporary
Starmer Warns of ‘Reckless’ Iranian Strikes Amid Escalating Regional Tensions
British Base in Cyprus Targeted as Drones Intercepted Amid Expanding Iran Conflict
Starmer Diverges from Trump on Iran Strategy, Rejects ‘Regime Change from the Skies’
Violent Pro-Iranian Protesters Storm U.S. Consulate in Karachi
Missile Debris Sparks Fires at Dubai’s Jebel Ali Port Near Palm Jumeirah
Iran Strikes U.S. Fifth Fleet Headquarters in Bahrain Amid Wider Gulf Retaliation
When the State Replaces the Parent: How Gender Policy Is Redefining Custody and Coercion
Bill Clinton Denies Knowing Woman in Hot Tub Photo During Closed-Door Epstein Deposition
Former U.S. President Bill Clinton Testifies on Ties to Jeffrey Epstein Before Congressional Oversight Committee
Dyson Reaches Settlement in Landmark UK Forced Labour Case
Barclays and Jefferies Shares Fall After UK Mortgage Lender Collapse Rekindles Credit Market Concerns
Play Exploring Donald Trump’s Rise to Power by ‘Lehman Trilogy’ Author to Premiere in the UK
Man Arrested After Churchill Statue Defaced in Central London
Keir Starmer Faces Political Setback as Labour Finishes Third in High-Profile By-Election
UK Assisted Dying Bill Set to Fall Short in Parliament as Regional Initiatives Gain Ground
UK Defence Ministry Clarifies Position After Reports of Imminent Helicopter Contract
Independent Left-Wing Plumber Secures Shock Victory as Greens Surge in UK By-Election
Reform UK Refers Alleged ‘Family Voting’ Incidents in By-Election to Police
United Kingdom Temporarily Withdraws Embassy Staff from Iran Amid Heightened Regional Tensions
UK Government Reaches Framework Agreement on Release of Mandelson Vetting Files
UK Police Contracts With Israeli Surveillance Firms Spark Debate Over Ethics and Oversight
Spain to Conduct Border Checks on Gibraltar Arrivals Under New Post-Brexit Framework
Engie Shares Jump After $14 Billion Agreement to Acquire UK Power Grid Assets
BNP Paribas Overtakes Goldman Sachs in UK Investment Banking League Tables
Geothermal Project to Power Ten Thousand Homes Marks UK Renewable Energy Milestone
UK Visa Grants Drop Nineteen Percent in 2025 as Migration Controls Tighten
Barclays and Jefferies Among Banks Exposed to Collapse of UK Mortgage Lender MFS
UK Asylum Applications Edge Down in 2025 Despite Rise in Small Boat Crossings
Jefferies Reports Significant Exposure After Collapse of UK Lender MFS
FTSE 100 Reaches Fresh Record Highs as Major Share Buybacks and Earnings Lift London Stocks
So, what's happened is, I think, government policy, not just under Labour, but under the Conservatives as well, has driven a lot of small landlords out of business.
Larry Summers, the former U.S. Treasury Secretary, is resigning from Harvard University as fallout continues over his ties to Jeffrey Epstein.
U.S. stocks ended higher on Wednesday, with the Dow gaining about six-tenths of a percent, the S&P 500 adding eight-tenths of a percent, and the tech-heavy Nasdaq climbing roughly one-and-a-quarter percent.
From fears of AI-fuelled unemployment to Big Tech's record investment, this is AI Weekly.
×