New York attorney general seeks to halt Coinseed’s activities.

The New York State attorney general (NYAG) filed a court motion to halt the activities of the cryptocurrency platform Coinseed.

Despite our lawsuit, @coinseedapp has continued to hold investors’ funds hostage, conduct unauthorized trades, and move virtual currency to an offshore trading platform.

I’m taking action to immediately halt the illegal operations of @coinseedapp as our lawsuit continues. https://t.co/ItfYTzv7Zi

— NY AG James (@NewYorkStateAG) May 7, 2021

In February 2021, the NYAG accused the company and two of its top executives of defrauding investors by more than $1 million. The lawsuit against Coinseed was also filed by the US Securities and Exchange Commission.

According to authorities, the company was not registered as a broker-dealer and raised $100,000 through an ICO by selling 200,000 CSD tokens. Prosecutors described the coins as worthless.

“During the months since the lawsuit was filed, this company has continued to operate illegally — holding investors’ funds hostage and conducting unauthorized trades,” said Attorney General Letitia James.

According to her, more than 130 investors have filed complaints with the agency about Coinseed.

In April, users accused the cryptocurrency platform of unauthorized conversion of their funds into Dogecoin.

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