The New York Attorney General (NYAG) – Letitia James – has won the case against the cryptocurrency trading platform Coinseed. According to the court ruling, the platform must shut down after cheating on its customers by converting their funds into Dogecoin (DOGE) without permission.
NYAG wins a win over Coinseed
New York attorney general’s Letitia James has won a court order against the digital asset exchange Coinseed and its chief executive officer – Delgerdalai Davaasambuu, according to a recent press release.
Coinseed illegally sold securities. It also acted as a broker-dealer without the required authorization before sinking millions of investors’ funds into DOGE without consent. For these fraudulent acts, the court ordered the trading venue to permanently cease operations and pay fines of $ 3 million.
The current New York attorney general pointed out that despite court orders, the dog exchange continued its illegal activities. She vowed to oppose any other company trying to circumvent the law that guarantees investors maximum protection:
“Coinseed and its CEO have been engaging in outrageous and fraudulent activities for years that have cheated investors out of millions. Despite court orders, this company has continued to act illegally and unethically, holding investors’ funds hostage, and highlighting the dangers of investing in unregistered virtual currencies.
We will continue to pursue anyone who tries to abuse and manipulate the system and ensure that investors are protected. “
In relation to Dogecoin, James referred to the digital asset as “an extremely volatile currency, the price of which rises and falls dramatically within hours on a given day”.
Letitia James, Source: The New York Times
Illegal cryptocurrency platforms not only in the US
Numerous authorities around the world, apart from the United States of America, are also grappling with illegal trading venues for digital assets.
At the end of July, for example, the Financial Intelligence Unit of Mexico (FIU) received information about 12 local cryptocurrency exchanges that are operating without legal permission.
The person in charge of the organization – Nieto Castillo – expressed the suspicion that these platforms could be connected to criminals who use cryptocurrencies in money laundering operations. Furthermore, he didn’t rule out the possibility that the venues might have a connection to the Jalisco Nueva Generación drug cartel, as they are all based in the same area.
While Mexico is still in the process of resolving the problem, Ukraine took tough measures and halted several illegal digital assets in the capital, Kiev. As part of the investigation, local police raided the offices and confiscated computers, cell phones, documents and foreign currency cash.
The customers of these illegal trading venues were mainly criminals, money launderers and online fraudsters. Interestingly, some of them were even organizers of mass protests that reportedly used the network to fund provocation campaigns on Ukraine’s Independence Day.
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