Dogecoin, originally created as a joke, has been trending in recent times – having seen some of the biggest gains in this bull market cycle. This time around, the meme coin finds itself caught up in some interesting court proceedings that include the New York Attorney General and a crypto currency service named coinseed.
This earlier portion of 2021 has been rather eventful, especially for Dogcoin – which grew its market cap from $621 million to approximately $61 billion since the beginning of the year. These positive price moves are strongly tied to the support that the meme coin has received from tech mogul, Elon Musk.
However, not everyone was impressed by Doge’s rise to prominence. Chief among them is Lettitia James, the New York Attorney General, who has taken legal action against a small cryptocurrency trading firm known as Coinseed.
In her petition to attain a preliminary injunction, the appointment of a receiver and, a temporary restraining order against Coinseed – she accuses the company of having illegitimately acting as a broker-dealer, misleading investors and illegally selling securities. As for Doge the New York AG’s greatest concern was its volatility.
Furthermore, the attorney general’s initial complaint filed on the 17th of February 2021 also accuses Coinseed of outright fraud by withholding investor’s funds and exchanging them for Doge without their consent.
“Rather than convert virtual currency to fiat currency to honor these requests, Defendants first reduced the daily withdrawal limit from $1,000 a day to $250 a day, and then ultimately disabled withdrawals altogether,” reads the court document.
This particular scenario is said to have played out as the price of Bitcoin saw a dramatic increase in upward momentum and investors were looking to harvest the fruits of their investment. However, Coinseed on the other hand, states that these are “false accusations” adding that “Coinseed has left NY in 2019 and we haven’t accepted any users from NY since 2018.” as per company CEO.
Whatever the case, the New York State AG has her sights trained on Coinseed as her statement regarding the matter reads, “Unregulated and fraudulent virtual currency trading platforms have no place in New York,”. Meanwhile, Dogecoin has remained relatively strong on the back of Elon Musk derived hype and institutional support.