Users have accused the Coinseed cryptocurrency platform of unauthorized conversion of their funds into Dogecoin. About 50 people have expressed their desire to join the class action lawsuit against the company, Decrypt reported .
Coinseed offered to invest in digital assets through a mobile app. In February 2021, the New York State Attorney's Office (NYAG) accused the project and its top managers of defrauding investors worth more than $ 1 million . A lawsuit against Coinseed was also filed by the US Securities and Exchange Commission.
According to authorities, one of the organizers of the project posed as a former Wall Street trader, but in reality he never worked with securities. The company was also not registered as a broker-dealer.
Members of the r / CoinseedSCAM subreddit complained that Coinseed converted funds to Dogecoin without their consent. Users in the Facebook group of the same name reported large losses due to the actions of the platform and stated that some of the application's functions were unavailable.
Jason Gottlieb, partner of Coinseed lawyer Morrison Cohen, in a commentary to the publication stated that he refused to cooperate with the company. According to the assumptions of lawyers, the leaders of the platform left the United States.
"It is clear that the relationship between lawyer and client is completely severed," Gottlieb said.
Dogecoin price has dropped 32.7% over the past seven days, according to CoinGecko . At the time of writing, the coin is trading at $ 0.27.
As a reminder, in March 2021, NYAG warned of the "extreme" risk of investing in digital assets and reminded participants in the cryptocurrency industry of their responsibility.
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