Coinseed allegedly converted users’ funds into Dogecoin without their consent

Users have accused the cryptocurrency platform Coinseed of unauthorized conversion of their funds into Dogecoin. About 50 people have expressed interest in joining a class-action lawsuit against the company, according to Decrypt.

Coinseed offered to invest in digital assets via a mobile app. In February 2021, the New York Attorney General charged the project and its top executives with deceiving investors for more than $1 million. The lawsuit against Coinseed was also filed by the U.S. Securities and Exchange Commission.

According to authorities, one of the project’s organizers posed as a former Wall Street trader, but in reality had never worked with securities. The company was also not registered as a broker-dealer.

Participants of the r/CoinseedSCAM complained that Coinseed converted funds into Dogecoin without their consent. Users in the eponymous Facebook group Facebook reported large losses due to the platform’s actions and said that some app features were unavailable.

Jason Gottlieb, partner of Coinseed’s attorney Morrison Cohen, told the publication that he refused to cooperate with the company. According to lawyers, the platform’s executives have left the United States.

“It is abundantly clear that the relationship between the attorney and the client has completely broken down,” Gottlieb stressed.

Over the past week, Dogecoin’s price has fallen by 32.7%, according to CoinGecko. At the time of writing the coin was trading at around $0.27.

In March 2021, the NYAG warned of “extreme” risk of investments in digital assets and reminded participants in the crypto industry of accountability.

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