Coinseed barred from operating in New York after shady Dogecoin (DOGE) dealings 🚨 This article is 3 years old...
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Coinseed barred from operating in New York after shady Dogecoin (DOGE) dealings
New York’s attorney general has secured a ruling that bars Coinseed from operating within in its jurisdiction.
2 min read
Updated: Sep. 15, 2021 at 7:37 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Coinseed, a cryptocurrency trading platform temporarily suspended previously via a preliminary injunction for violating New York state laws and for illegally squandering investors’ fund but has finally been ordered by the Supreme Court of the State of New York to shut down its operation within the state.
Coinseed vs New York
In February, State Attorney General Letitia James had filed a lawsuit against Coinseed and a pair of its executives, including founder and CEO, Delgerdalia Davaasambuu for running unregulated and fraudulent cryptocurrency trading platforms, which later ended in a temporary suspension of the platform in May.
However, the new judgment against it proved that it has been running in contravention to the earlier ruling against it.
On September 13, Attorney General James was able to secure another court judgement against the cryptocurrency trading platform its CEO, which would force the crypto firm to suspend its operations and make provision to protect its investor’s fund.
Not only that, the court also slammed a $3 million fine against Coinseed, which would be awarded to several of its victims of fraudulent acts and operations as an unregistered and unregulated commodities dealer. They are also permanently barred from operating as a broker, dealer and advisor or issuer for any commodity or security trading in the state.
Coinseed violated court orders
One of the offenses levied against Coinseed is the violation of a court order. There was initially a court injunction restraining the platform from operation in June; however, the platform continued its operations.
According to the office of the Attorney General, “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.”
It concluded that “In defiance of court orders, this company has continued to operate illegally and unethically, holding investors’ funds hostage and underscoring the dangers of investing in unregistered virtual currencies.”
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Dogecoin is a cryptocurrency created in December 2013 as a joke by software engineers Billy Markus and Jackson Palmer.