Just because a crypto trading platform is big, established, and has lots of online reviews and media coverage, does not mean it’s a trustworthy platform.
Coinseed, for example, is a spare change investment and social trading platform focused on cryptocurrency. Think Acorns but for crypto.
They are being sued for fraud.
On May 6, New York Attorney General Letitia James requested a temporary restraining order and other legal action against Coinseed.
The Thursday lawsuits build on the initial legal action the NYAG took against Coinseed on February 17.
At the time, James claimed the crypto company was defrauding investors and did not have the proper licensure.
Coinseed CEO Delger Davaasambuu denied the accusations. He said that Coinseed has left New York in 2019. Since then, Coinseed has not accepted any users from New York.
New York Attorney General said that they received more than 130 complaints since February from Coinseed investors worried about their assets.
New York Attorney General said and I quote “In the months since we filed our suit, the greed perpetrated by Coinseed and its CEO has not only continued, but grown. This company has continued to operate illegally — holding investors’ funds hostage and conducting unauthorized trades in investors’ portfolios, while depleting accounts and transferring virtual currency to an offshore, unregulated trading platform. We filed this motion to immediately halt Coinseed’s unlawful activity and protect the investments that are left.”
This is America.
The accused is assumed to be innocent until proven guilty. This works fine for the justice system, but situations like this should concern us as investors. After all, this is our money we’re talking about.
This will be a long legal battle for them. If you are invested through Coinseed, I suggest you talk to a financial advisor and lawyer immediately.
For those thinking about investing in cryptocurrency, please make sure you do your due diligence. Make sure you are dealing with a US-based company with proper permit, licenses, and great reputation.
Make sure you can get them on the phone when you need them. Make sure you know where their headquarters is.
With My Digital Money, you can be assured of that.