Crypto Startup Coinseed is Accused of Defrauding $1M
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18 February
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The New York State Office of the Attorney General (NYAG) has charged crypto startup Coinseed and two of its executives with defrauding investors over $1M.

According to the agency's site, in 2017 Coinseed raised $100,000 through the sale of 200,000 CSD tokens as part of the company's ICO. The office of the attorney has called the tokens worthless and noted the company was not registered as a broker-dealer.

The Office of the Attorney General has ruled that Coinseed executives misled investors regarding their professional experience. One of the organizers of the scheme pretended to be a former Wall Street trader when in fact he had never worked with securities. Attorney General Letitia James said:

"This lawsuit should send a clear message to all those trading cryptocurrencies that my office will work tirelessly to ensure transparency and fairness in the market."

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Coinseed CEO Delgerdalai Davaasambuu said he disagrees with the regulator's accusations and that the company has never allowed US residents to take part in the ICO. He added:

"I'm 100% sure that the suit is full of false accusations."

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