Earlier this year, the Attorney General of New York won a legal battle against the cryptocurrency investment programme Coinseed.
According to a default judgement entered on September 13, Coinseed and its founder Delgerdalai Davaasambuu failed to even respond to the New York Attorney General’s initial complaint.
The case was filed in February and accused Coinseed of trading cryptocurrencies in the state without being registered as a broker-dealer as required by the Martin Act.
Coinseed violated a court order issued in June, according to a statement from Attorney General Letitia James, who stated that the firm’s activities were meant to be halted by the order.
As a result, the office of Attorney General James claimed, “Coinseed and its CEO defied that preliminary injunction by creating, offering, and selling a new virtual currency — including to New York investors — and failed to respond to Attorney General James’ complaint.”
Coinseed and Davaasambuu must now reimburse investors for a total of $3,061,511 in compensation, as well as pay other court fees.
The individuals are also permanently forbidden from acting as a broker, dealer, advisor, or issuer in connection with any commodities or security trading in the state of New York for the rest of their lives.
