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Coinseed Shut Down for Good, NYAG Takes the Victory

Coinseed Shut Down for Good, NYAG Takes the Victory
  • Coinseed has been shut down for good.
  • New York Attorney General (NYAG), Letitia James, made sure of it.
  • Coinseed still owes some users their funds back.

The online crypto trading platform — Coinseed, has shut down for good. New York Attorney General (NYAG) — Letitia James, made sure to end all operations by Coinseed.

The decision took priority due to plenty of complaints that came from Coinseed’s clients. To specify, the complaints pertain to the non-consensual swapping of client funds for Dogecoin (DOGE).

In detail, James called for action on September 13, 2021. She had Coinseed shut down for good. To add on, the exchange also has to pay $3 million in fines to stave the accusations.

About 3 months ago, James had already sued Coinseed. This was due to Coinseed having raised $1 million from an initial coin offering (ICO). At this time, Coinseed had violated the Martin Act.

Back then, the CEO of Coinseed — Delgerdalai Davaasambuu, firmly stuck to his story of Coinseed getting zero client complaints about its ICO. James, on the other hand, claimed they received over 170 complaints on the same.

While Davaasambuu did express his gratitude and thoughts about his now halted mission to his community, he also promised vengeance. In a fit of grief and rage, Davaasambuu airdropped a special ERC-20 token called FLJ (FuckLetitiaJames).   

Coming to the present, it seems the animosity has only grown further. James has taken it upon herself to drag Coinseed for continually breaking the law. She says,

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.

To highlight, Davaasambuu is yet to return a large number of user funds. However, users have only faced radio silence so far. Nevertheless, this is still an absolute win for NYAG Letitia James.

An eager wordsmith who conveys her thoughts and fascinations through words and storytelling. Besides lurking on new and emerging technology forums, she’s always updated when it comes to blockchain.