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UPDATE 10/28/2021:
I published the below article quite some time ago, and wanted provide and update to those who fell victim to the Coinseed scam.
As I mentioned in the original article below, NY AG's office brought action against Coinseed, which ended up with CEO Del agreeing to put the company into
The firm handling the receivership -- meaning the distribution of the company's funds to those who have valid claims against it -- Crowell and Moring. You can visit their website by going to www.crowell.com. The attorney handling the case is Michelle Gitlitz and her colleague Arlen Pyenson is handling the collection of user information. This is the one you want to reach out to directly, and you can do so by email at [email protected].
This is all the information I have as of current. I included the following text of the original article so that there is a clear chronological record -- and for clarity's sake. I will continue to post updates as the situation progresses.
Original Article
Were You Scammed by Coinseed? Notification of Intent to Pursue Litigation
Were you scammed by Coinseed, the supposed DeFi crypto investing app? Did you lose profit from your invested Bitcoin, Ether, LTC, XRP, DOGE, or any of the other major cryptos that this fraud service advertised as being available through their app?
Thousands have been scammed, and only some have been able to receive refunds or partial refunds from their bank because the service defrauds clients into thinking they have safe crypto stored and making profit so that the 60 day dispute time frame runs out.
The SEC has already brought an enforcement action against them.
So has the New York Attorney General Letitia James, who seeks to shut the site down.
All services in the app have been pretty much turned off -- yet they still allow people to deposit!
I lost a total of $4300 through their scam, and was able to recoup around $800 from my bank. Thus, I am in the process of putting together a class action lawsuit against them. I'm sure that there are plenty of you out there the have lost much more than this, but the amount doesn't really matter. They took advantage of vulnerable people in the middle of a global pandemic, operating as a mix between a classic Ponzi scheme and an exit scam.
If you have lost money due to the fraudulent services of Coinseed, Inc., please (SEE ATTORNEY INFORMATION ABOVE) if you don't want your personal information on this website, and I will get your story over to the attorney looking into this. Early plaintiffs in a class action can sometimes act as the "class representative," and if so, will receive a separate award if we win the case or achieve a settlement.
The SEC will try to help people as much as they can, but they won't be able to recoup all of the funds. Thus, bringing this action is the best way I know of to ensure that we have a chance to get our funds back.
Hope to talk to many of you soon. Let's show this scammer -- CEO Delgerdalai Davaasambuu -- and the rest of the Coinseed criminals -- that we are not the people who will take being stolen from lying down!
NY AG Lawsuit Info: https://www.natlawreview.com/article/new-york-attorney-general-sues-to-shutter-cryptocurrency-trading-firm-coinseed
SEC Enforcement Info: https://www.sec.gov/litigation/litreleases/2021/lr25032.htm
Pending Class Action Site: http://www.synergenlaw.com/coinseed-case-evaluation/ (This is not me, it's others that are represented by another attorney, but I may merge my efforts after discussing with them). (NOTE 10/28/2021: Synergen passed the information they collected on to the receivership attorney, but feel free to reach out anyway)
Here's what happens when you try to get your money, no matter if you have previously been approved for withdrawal or not:
There was also a point during April-May of this year -- when DOGE was at its highest -- that Coinseed automatically and without consent initiated trades converting ALL user balances to DOGE. This is another crime that needs to be addressed.
UPDATE 10/28/2021: Of course, we know now that the app has been delisted and will no longer open at all. For those of you who lost funds, I do hope you preserved evidence in the form of a screenshot from the app when it was at its highest value. This is what the attorneys will use to return your funds. I have no idea how long it will take for this to happen, you will need to reach out to them and provide your information.
