Coinseed, a crypto platform that enables micro-investment in cryptocurrency assets for its users, has shut down its operations.
Coinseed founder and CEO Delgerdalai Dawasambu announced the decision in a statement. published on the forum’s website.
Detailing his decision to wind up the business, Dawasambu wrote:
“It is with an incredibly heavy heart that I am today announcing that I am winding down business due to the NYAG (New York Attorney General) lawsuit.”
As previously reported by Cointelegraph, the New York State Attorney General’s Office Fraud charges brought against Coinseed Back in February. At the time, the NYAG accused Coinseed of misleading investors with the sale of more than $1 million of unlicensed securities.
The NYAG’s legal attack on Coinseed was based on alleged violations of the Martin Act, a New York anti-fraud law. New York State Attorney General Letitia James, Under Office The Martin Act was also used in pursuance of this. Crypto exchange Bitfinex and stablecoin issuer Tether.
In his message posted on the Coinseed website, Dawasambu slammed key NYAG actors, including former New York State Attorney General Eric Schneiderman. The head of Coinseed accuses the NYAG of double standards in its pursuit of the company.
Back in February, the CEO of Coinseed dismissed the NYAG’s case against the company, stating that citizens of the United States were not involved in the 2017 initial coin offering.
Davaasambuu accused the NYAG of profiting from a lack of clear regulations in the state as a means to extort settlement payments from cryptocurrency firms.
Coinseed shuts down because the company does not have access to payment providers after the NYAG lawsuit. Dawasambu promised to refund the user money at a later date.
As part of the closure announcement, the Coinseed boss also revealed an ERC-20 token that appears to have been created in spite of James. Reportedly dubbed FuckLetitaJames (FLJ), the token will be airdropped to interested individuals.