Letitia James, the Attorney General of New York, has won an order for ceasing the activities of the crypto platform Coinseed. In essence, the court order issues an authorized suspension of the Coinseed operations. To consider it in the right perspective, the court orders the receivers to protect their assets. The Supreme Court of the New York County state announced this order on 4th June by allocating Michelle Gitlitz as the recipient.
Former Order of Court
In the recent month, James, the Attorney General, registered for a momentary restriction order that was an initial prohibition and the allocation of a receiver confronting Coinseed. The accusations put forward by her on the Coinseed included deceiving the consumers and shutting down their accounts of cryptocurrency.
In James’ view, Coinseed countered a frequency of requests from the investors for withdrawal, so to speak, after realizing the tremendously increasing value of Bitcoin. It was mentioned in the complaint of 17th February that instead of converting the digital currency to a stable level, the responsible authorities initially minimized the limit of normal withdrawal from $1000 per day to $250 per day to meet the situation, and finally, they disabled the withdrawals completely.
Initially, a lawsuit was filed in February against Coinseed, along with its CEO and founder, Delgerdalai Davaasambuu. Nonetheless, it was claimed by the Attorney General that she had received complaints about 170 from the concerned investors since the fraud of Coinseed and its founder began.
On the other side of the picture, the CEO of Coinseed condemns all the accusations made against him by calling them harassment and bullying on behalf of the office of the Attorney General. He declares that, like other broad-scale exchanges such as Kraken or Coinbase, his platform works without any fraud. Nonetheless, it was aimed by the accusers because it was not as big as the others, and its economic condition could not help it to afford an expensive lawsuit.
Tether being opposed by the Attorney General
James is not taking her first action opposing a company based on cryptocurrency. Her office made a settlement with crypto exchanges Bitfinex and Tether. The settlement was a result of the investigation of OAG. The investigation pointed out that IFinex, the company by which Tether and Bitfinex are operated, gave untrue statements about the trade of a hundred million among these companies and about the support of the stable coin tether.