NYAG Aims to Shuts Down Trading App Coinseed Due To Several Fraud Allegations

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Letitia James, current New York Attorney General (NYAG), seeks to impose a temporary restraining order and preliminary embargo to prevent crypto trading application Coinseed from moving money or hold investor funds further.

This development came following the NYAG’s initial charge against the app and its executives last February, wherein claims that Coinseed illicitly traded cryptocurrencies without a license as a broker-dealer in New York and thus, needs to be shut down. Notably, Coinseed is allegedly also profiting off its users via hidden fees and false claims, which reportedly has now accumulated to about $1 million.

Furthermore, multiple Coinseed users have now since contacted the NYAG about their crypto balances suddenly being converted to Dogecoin (DOGE) without any approval coming from them. In one instance, a user claimed that his $48,000 holding unknowingly turned into $31,000 worth of DOGE.

As per James, the greed being showed by Coinseed and its top executive isn’t only persistent despite the many allegations thrown against them already, it is still growing. She adds that the company has continued to facilitate illegal trading and now must be put to a stop.

Coinseed, meanwhile, remained silent throughout the whole issue. Interestingly, its law firm, the Morrison Cohen, has also recently announced that it no longer desires to represent the trading app in the court of law – fanning the wide speculation that it is indeed guilty of all charges.

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