An automatic cryptocurrency investing application, Coinseed Inc., is facing allegations of defrauding investors and breaking United States registration laws within a pair of legal actions purchased Wednesday by the United States SEC [Securities and Exchange Commission] and therefore the State of New York.
The application-based service bilked investors of $1 Mln via hidden fees, false claims and a flopped token, New York Attorney General Letitia James alleged in her state’s suit. She charged Coinseed, which didn’t have a BitLicense or federal clearance, with operating an unregulated securities and commodities trading shop.
James explained that she seeks to shutter Coinseed & ban its executives Delgerdalai Davaasambu & Sukhbat Lkhagvadorj from participating in mere future investment plays. The state is seeking monetary relief for victims via the courts.
Coinseed faces a related suit from the SEC, James revealed within an official announcement. Those federal-level filings weren’t available at the reporting time on Wednesday.