Coinseed crypto app shutters after New York AG Letita James investigation
CBSN
A cryptocurrency trading company in New York called Coinseed is closing for good after being investigated for alleged fraudulent investment activity by the state attorney general's office.
The multi-year investigation by Attorney General Letitia James eventually led to a lawsuit filed in February, in which James' office accused Coinseed of trading cryptocurrencies through its app without being registered as a broker-dealer in New York. James' office alleged Monday that Coinseed continued to trade cryptocurrencies after the lawsuit was filed and was even trading on investors' accounts without their knowing. "When platforms operating illegally in New York seek to trade on investors' money, we will use every tool at our disposal to stop their unlawful actions," James said in a statement Monday. "We will not allow rogue operators to hold innocent investors' funds hostage while they deplete accounts and transfer virtual currency to an offshore, unregulated trading platform."
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