New York Authorities Secured Closure of Coinseed Crypto Exchange

New York prosecutor received a court order on Monday to shut down the operations of the crypto exchange, Coinseed, which is accused of defrauding its customers.

September 14, 2021, | AtoZ Markets – The Coinseed cryptocurrency exchange has been closed by order of the New York State Supreme Court. The court also ordered a money judgment of $3 million against both the company and its Founder.

 Infamous crypto marketplace Coinseed shut down

AtoZ Markets has learned that a permanent receiver will be appointed later to protect investors' funds, James said. He will also be responsible for taking back control of the Coinseed website. This was stated at a press conference by New York Attorney General Laetitia James.

However, it remains unknown whether users affected by the site's actions will be able to recover their assets.

Recall that the incident around Coinseed happened in early February this year. Then people began to massively complain about the unauthorized conversion of their assets into dogecoin (DOGE). Moreover, along with the conversion, they also lost the ability to withdraw cryptocurrency from the service.

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In June, project founder Delgerdalay Davaasambuu announced the closure of the service after the New York Attorney General's Office filed a lawsuit against him. He promised to return the money to users, noting that he "consults" with law firms on this matter.

It is noteworthy that after complaints from Coinseed clients, Jason Gottlieb, a partner at Morrison Cohen, a law firm representing the interests of the crypto platform, announced his intention to terminate the contract with Coinseed. The company argued that Coinseed did not systematically get in touch on "big decisions." Davaasambuu himself did not comment on these accusations in any way.

According to preliminary information, the financial damage from the actions of Coinseed executives may amount to more than $900,000. Moreover, about $650,00 falls on just one user.

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