New York State Attorney Laetitia James has filed a lawsuit against cryptocurrency platform Coinseed, alleging defrauding thousands of investors, including selling fake cryptocurrencies and charging hidden trading fees.

Submitted Laetitia James, the Attorney General of the State of New York, filed a lawsuit in the Supreme Court in Manhattan against the cryptocurrency trading platform “Coinseed”, accusing it of defrauding investors, in addition to a number of violations such as the illegal sale of unregistered securities in the form of digital currencies, and the platform also accused Misrepresentations and lies regarding the management team.

The lawsuit also stated that Coinseed traded cryptocurrencies such as Bitcoin without registering its business as a broker, and sold CSD coins without approved approval from regulatory authorities to raise funds to launch its own mobile applications.

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In addition to filing a lawsuit against Coinseed, James also filed a lawsuit against two CEOs, namely Mr.:

• Delgirdali Davasambu, CEO of Coinseed.
• and Sokhbat Lakhvadurg, Chief Financial Officer at Coinseed.

While the lawsuit stated that managers overestimated the company’s management expertise.

The statement of the lawsuit stated:

“Lkhavadurg” misrepresented himself, lied and stated that he was a former Wall Street trader, when in fact he had never traded in securities or commodities before.

James’ lawsuit also stated that Coinseed defrauded investors of more than $1 million, and is therefore seeking to compensate the victims.

Also, in a separate event in Manhattan Federal Court, the US Securities and Exchange Commission (SEC) filed a lawsuit against Coinseed and Davasambo over the illegal sale of cryptocurrencies.

Both regulators claimed that Coinseed sold cryptocurrencies from December 2017 to May 2018.

US regulators are concerned that the increasing use of cryptocurrencies in the global market appears to entice fraudsters to lure investors into Ponzi schemes and other scams in which these coins are used to facilitate fraudulent investments or transactions.

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Such schemes promise investors high investment returns with little or no risk.

Investors are therefore encouraged to contact the SEC or the securities regulator to report fraud and obtain assistance.

For our part, we always recommend in Arab Bitcoin the need to learn first and trade on large and well-known platforms only and to stay away from fraudulent schemes that promise quick profit.

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