NY-AG v. Coinseed

Coinseed allegedly defrauded thousands of investors across the nation out of more than 1 million dollars. Coinseed and its executives allegedly violated New York state laws by unlawfully trading cryptocurrencies without being a registered broker-dealer in New York, while simultaneously failing to disclose certain fees associated with the trading of virtual currencies on their investor’s behalf. Coinseed allegedly scammed investors into purchasing their CSD token by violating New York laws requiring complete and truthful disclosures. According to NY-AG, the defendants were adding an undisclosed markup to the quoted price to extract additional fees from investors and conducting an unregistered securities offering in the form of an initial coin offering (ICO) for CSD, as well as never registering to trade any cryptocurrency within or from New York state.

Summary generated from official New York Attorney General press release