Coinseed, a crypto platform that enabled micro-investing in cryptocurrency assets for its users, has shut down its operations.
Delgerdalai Davaasambuu, founder and CEO of Coinseed, announced the decision via a statement published on the platform’s website.
Detailing his decision to shutter the business, Davaasambuu wrote:
“It is with an incredibly heavy heart, today I’m announcing that I am winding down the business due to a lawsuit from the NYAG (New York Attorney General).”
As previously reported by Cointelegraph, the Office of the New York State Attorney General brought fraud charges against Coinseed back in February. At the time, the NYAG accused Coinseed of misleading investors with the sale of unlicensed securities to the tune of over $1 million.
The NYAG’s legal assault on Coinseed was based on alleged violations of the Martin Act, a New York anti-fraud law. Under New York State Attorney General Letitia James, the office also used the Martin Act in its pursuit of crypto exchange Bitfinex and stablecoin issuer Tether.
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