NYAG shuts down Coinseed
New York Attorney General Letitia James has shut down the operations of cryptocurrency exchange Coinseed following complaints that customer funds have been converted into Dogecoin without their consent.The NYAG ordered the crypto exchange to permanently close its operations yesterday and pay $3 million in fines. The crypto exchange was accused of freezing withdrawals and converting client funds into DOGE without consent.
According to a Bloomberg report, Coinseed was also accused of emptying its bank accounts and issuing unlicensed securities. Coinseed had been previously asked to stop operating by numerous court orders. However, James said the exchange continued to engage in egregious and fraudulent activities in the middle of a trial.
Coinseed was operating illegally
Law360 said, "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."More than 170 Coinseed customers reported the crypto exchange to the authorities after failing to access their cryptocurrencies. Some of them claimed to have tens of thousands of dollars from their Coinseed accounts.
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