NEW YORK — New York’s attorney general has filed a lawsuit to shut down the cryptocurrency platform Coinseed Inc. for allegedly defrauding thousands of investors, including by charging hidden trading fees and selling “worthless” digital tokens.
Attorney General Letitia James said Coinseed traded cryptocurrencies such as bitcoin without registering as a broker-dealer, and sold “CSD” tokens without authorization to raise money for its mobile application startup.
James also sued Coinseed Chief Executive Delgerdalai Davaasambuu and former Chief Financial Officer Sukhbat Lkhagvadorj, alleging they overstated the midtown Manhattan-based company’s management experience, while Lkhagvadorj allegedly misrepresented himself as a former Wall Street trader.
Coinseed’s fraud totaled more than $1 million, according to James, who is also seeking restitution for investors.