Coinseed Inc, an automated crypto investing app, is facing allegations of defrauding investors and breaking U.S. registration laws in a pair of legal actions brought Wednesday by the U.S. Securities Exchange Commission and the State of New York.
The app-based service bilked investors of $1 million through hidden fees, false claims and a flopped token, New York Attorney General Letitia James alleged in her state’s suit. She charged Coinseed, which did not have a BitLicense or federal clearance, with running an unregulated securities and commodities trading shop.
James said she seeks to shutter Coinseed and ban its executives Delgerdalai Davaasambu and Sukhbat Lkhagvadorj from participating in future investment plays. The state is seeking monetary relief for victims through the courts.
Coinseed faces a related suit from the SEC, James said in her press release. Those federal-level filings were not available at press time Wednesday.
This story is developing and will be updated.