Judge orders Coinseed to shut down and pay $3 million in relief

Sep 13, 2021 | The Block News | 0 comments

judge-orders-coinseed-to-shut-down-and-pay-$3-million-in-relief

The attorney general of New York scored a victory in its case against crypto investment app Coinseed. 

Per a September 13 default judgment, Coinseed and founder Delgerdalai Davaasambuu never even formally responded to the NYAG’s initial complaint, filed in February, which accused Coinseed of trading cryptocurrencies in the state without registering as a broker-dealer as required by the Martin Act. 

An announcement from attorney general Letitia James said that Coinseed violated a court order in the case from June that was supposed to stop the firm’s activities.

Instead, James’ office wrote: “Coinseed and its CEO defied that preliminary injunction by creating, offering, and selling a new virtual currency — including to New York investors — and failed to respond to Attorney General James’ complaint.”

Coinseed and Davaasambuu now must pay relief of $3,061,511 to investors, as well as assorted court fines. They are also permanently barred from operating as a broker, dealer, advisor or issuer for any commodity or security trading in the state of New York. 

© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

News Source from TheBlockCrypto.com

Related Articles

El Salvador brings Chivo ATMs to the US

El Salvador brings Chivo ATMs to the US

El Salvador has brought its Chivo bitcoin ATMs to several U.S. cities, a move aimed at making it easier and cheaper to send remittances abroad to friends and family in the Central American country.  El Salvador now counts 50 of the commission-free Chivo ATMs in 10...

Pin It on Pinterest

Share This