New York’s Attorney General has moved to shutter automated crypto trading app Coinseed for allegedly continuing to defraud its users even as it faced pressure on multiple legal fronts.
- Alleging continued fraud and citing new evidence, Attorney General Letitia James filed a court motion on Thursday to freeze Coinseed’s trading activity and halt all operations.
- In February, James accused Coinseed of bilking $1 million from investors through hidden fees, false claims and a flopped token. The U.S. Securities and Exchange Commission (SEC) hit Coinseed with token registration violations in a parallel suit.
- Coinseed CEO Delgerdalai Davaasambuu, who is named in the NYAG suit, did not immediately respond to CoinDesk.
- The new evidence includes allegations of unauthorized trading activity, new filings show.
- Multiple users told NYAG their crypto balances were converted to dogecoin without their consent. One said his $48,000 position became around $31,000 in DOGE without his knowledge:
Read more: Automated Crypto Investing App Coinseed Faces Fraud Charges in NY, SEC Lawsuits