On the back of a legal onslaught from the New York state Attorney General Leticia James, crypto currency trading platform – Coinseed – announced on the website’s landing page that they are preparing to close its doors for good.
“I’m announcing that I am winding down the business due to a lawsuit from the NYAG,” reads the note left by Coinseed’s co-founder and CEO, Del Davaasambuu.
Davaasambuu and his company’s woes began in February when the James filed a lawsuit against the digital assets service provide for allegedly defrauding investors of a sum of around $1 million – which is said to have been fleeced from investors through undisclosed fees and selling them “worthless” tokens.
On the 7th of June, the Attorney General got her desired result when she granted a court order to put a stop to what it also referred to as fraudulent and illicit business operations of Coinseed.
“When platforms operating illegally in New York seek to trade on investors’ money, we will use every tool at our disposal to stop their unlawful actions,” a triumphant James said.
Davaasambuu also had his own views to share and feels that he and his company had done nothing wrong.
“There are still no regulations about how to classify cryptocurrencies and what kind of licenses they should obtain to run a business in the US,” he said in a post regarding the matter “We don’t even have a clear guidance on how to pay crypto-related taxes.”