New York authorities accuse Coinseed of $1 million fraud

The New York Attorney General’s office (NYAG) has charged the cryptocurrency startup Coinseed and two of its top executives with defrauding investors of more than $1 million. The agency’s site is represented by the anchor: agency’s site.

According to authorities, in 2017 the project raised $100,000 through the sale of 200,000 CSD tokens in an ICO. The prosecutors described the coins as useless and stressed that the company was not registered as a broker-dealer.

According to the complaint, Coinseed’s executives misled investors about their professional experience. One of the project’s organizers allegedly presented himself as a former Wall Street trader, but in reality had never worked with securities, the prosecutors noted.

“This lawsuit should send a clear signal to all those who trade cryptocurrencies that the agency will tirelessly work to ensure transparency and fairness in the market,” said Attorney General Letitia James.

The suit against Coinseed was also filed by the U.S. Securities and Exchange Commission (SEC).

The startup’s chief executive Delgerdalai Davaasambuu, in a comment to Business Insider, said he did not agree with the NYAG’s claims. According to him, Coinseed did not permit US-based users to participate in the ICO.

“I am 100% confident that the suit is full of false allegations,” he noted.

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Earlier, the SEC ordered the blockchain project Tierion to pay a $250,000 fine , return $25 million to ICO investors and halt trading of the tokens.

In February, the commission charged the partners of the crypto startup Bitcoiin2Gen with fraud of $11.4 million in connection with an ICO involving actor Steven Seagal.

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