It looks set to continue the work of clearing the crypto sector by the US financial market regulators. The latest subject in the sights of Securities and Exchange Commission and New York Attorney General is Coinseed Inc., accused of running a scam-addicted cryptocurrency trading platform. As demonstrated by the thousands of investors looted so far for over a million dollars.
Coinseed: what is happening
The New York Attorney General Letitia james took legal action on Wednesday to obtain the closure of the cryptocurrency exchange platform owned and operated by Coinseed Inc.
The lawsuit was filed in the New York County State Supreme Court and is based on a very specific charge: its blatant illegality. Responsible for which will be its founder and CEO Delgerdalai Davaasambuu, and its chief financial officer Sukhbat Lkhagvadorj.
According to Letitia James, Coinseed has deliberately ignored numerous laws on the registration of securities and commodities. With the clear intention of deceiving its users.
The CSD token is illegal
According to the statement issued by the New York Attorney General's Office, Letizia James's aim is in particular to prevent Coinseed and the two individual defendants from further operating as unregistered commodity broker-dealers through their mobile application. Also proposing the return of the investments made on the CSD token, referred to as a worthless cryptocurrency.
The lawsuit also claims that the defendants tried to finance their fraudulent company by raising funds in an offer of unregistered securities which took place between the end of 2017 and the middle of the following year. They also use false claims about their professional experiences and the role of their management team with the express intent of attracting investors. Which actually took the bait proposed. Not only in the state of New York, but also in the rest of the federation.
A real offensive is taking place
The lawsuit filed against Coinseed comes at a very special time, like the one you see there SEC engaged in lawsuit against Ripple Labs. Proof of the fact that the supervisory authorities seem actually determined to put an end to a bad habit which is worrying the cryptographic space itself. Whose healthy parts are forced to coexist with actors basically dedicated to deceiving potential investors who would like to participate in a rapidly growing sector.
Meanwhile, Janet Yellen still thunders against digital assets
To demonstrate the particularity of the moment, the Janet Yellen's latest verbal excesses, Treasury Secretary of the new Biden administration, against cryptocurrencies. Once again pointed out as a possible tool of the criminal economy. A thesis repeatedly denied by the data, which however returns to hover menacingly on financial innovation.
The activism of the regulatory bodies over the last few weeks has been interpreted by many observers as the signal of a sort of witch hunt. If up to now projects criticized by the same crypto-fans have been hit, in the immediate future, even currently unsuspected ones, could enter the sights of the SEC and prosecutors. All that remains is to await further developments in this regard.