New York Attorney General (NYAG) Letitia James has filed a motion asking the court to "immediately block Coinseed" and its Chief Executive, Delgerdalai Davaasambuu, from making any further "unauthorized trades and safeguarding investors’ monies."
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Attorney General James emphasized that the greed perpetrated by Coinseed and its CEO has grown despite the fact the NYAG filed the case against Coinseed and its executives three months ago.
"This company has continued to operate illegally — holding investors’ funds hostage and conducting unauthorized trades in investors’ portfolios, while depleting accounts and transferring virtual currency to an offshore, unregulated trading platform," James added.
Earlier in April, Coinseed clients raised the alarm after their funds were converted to the dogecoin (DOGE) cryptocurrency without their consent. In addition, users in a Facebook group also claim to have suffered large losses due to the company's actions and claim that some of the app's features were unavailable. The company still does not respond to inquiries.
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