New York State Attorney General Letitia James has sued crypto investment platform Coinseed Inc for allegedly defrauding thousands of investors out of more than $1 million.
According to the Attorney General, Coinseed and its CEO Delgerdalai Davaasambu and former CFO Sukhbat Lkhagvadorj, traded unlawfully, defrauding investors between 2017 and May 2018:
“Rather than selling stock, Coinseed sold digital tokens to raise funds to support the growth of its business. Defendants represented to investors that money raised in the ICO would be used to ‘accelerate [Coinseed’s] growth and global expansion.’”
The allegations laid out in the court documents center around Coinseed’s violation of the Martin Act, a New York-based anti-fraud act. In the ICO of their CSD token which launched in December 2017, Coinseed raised more than $100,000 by selling 200,000 tokens.
The Attorney General stated investors were misled about the potential to profit from CSD Tokens, which were distributed by the defendants despite their failure to register