In the US, the Securities and Exchange Commission (SEC) has filed a petition for a court order to shut down a cryptocurrency trading platform, which it says allegedly duped thousands of investors out of more than $32 million.
The United States Securities and Exchange Commission (SEC) have filed a lawsuit against cryptocurrency investment platform Bitconnect for running a Ponzi scheme. Bitconnect falsely represented that it offered investors returns of up to 40 percent per month by lending them money and using their cryptocurrency as security. The company also guaranteed daily returns of one percent, and claimed its lending program was “safe and guaranteed.” It is alleged that Bitconnect promoted its cryptocurrency platform as a way for investors to earn returns of up to 40 per cent per month. In order to invest in the scheme, investors would purchase Bitconnect Coin and then use it to purchase Bitconnect Tokens. The price of Bitconnect Coin is said to have risen in value as a result of this
New York Attorney General Letitia James is seeking a court order to immediately shut down cryptocurrency exchange Coinseed. The attorney general had previously filed a lawsuit against the cryptocurrency exchange, but the platform reportedly continued to operate and defraud investors.
US authorities take urgent action against Coinseed
The office of Attorney General Letitia James announced Friday that the Attorney General has taken legal action to immediately end the ongoing illegal and fraudulent activities of cryptocurrency trading platform Coinseed Inc.
Late Thursday, a motion was filed asking the court to grant a temporary restraining order, issue a preliminary injunction and appoint a receiver to immediately prevent Coinseed and its CEO from engaging in further unauthorized transactions and to protect investors’ money, according to the press release. The administrator will oversee all assets to protect the investment during Attorney General James’ proceedings.
In February, James filed a lawsuit against Coinseed and two of its top executives, including founder and CEO Delgerdalai Davaasambuu. They allegedly violated New York State laws and illegally misappropriated investors’ money.
However, in the months since the complaint was filed, the scam by Coinseed and its CEO has not only continued, but increased, the statement said, adding that Coinseed and its CEO continue their fraud and that the Office of the Attorney General (OAG) has become aware of more fraud. In the past three months, the OAG has received more than 130 complaints from investors concerned about protecting their assets as a result of Coinseed’s deceptive practices.
The Attorney General stated:
The company continued to operate illegally, holding investors’ funds hostage and conducting unauthorized transactions in investors’ portfolios, draining accounts and transferring virtual currencies to an unregulated offshore trading platform.
We filed this motion to immediately end Coinseed’s illegal activities and protect our remaining investment, she concluded.
What do you think of the New York Attorney General’s actions against the cryptocurrency exchange Coinseed? Let us know your comments in the section below.
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