Crypto investment platform Coinseed shuts down amid NYAG lawsuit

Coinseed also created an ERC-20 token whose message is targeted at New York Attorney General Letitia James.

Coinseed, a crypto platform that enabled micro-investing in cryptocurrency assets for its users, has shut down its operations.

Delgerdalai Davaasambuu, founder and CEO of Coinseed, announced the decision via a statement published on the platform’s website.

Detailing his decision to shutter the business, Davaasambuu wrote:

“It is with an incredibly heavy heart, today I’m announcing that I am winding down the business due to a lawsuit from the NYAG (New York Attorney General).”

As previously reported by Cointelegraph, the Office of the New York State Attorney General brought fraud charges against Coinseed back in February. At the time, the NYAG accused Coinseed of misleading investors with the sale of unlicensed securities to the tune of over $1 million.

The NYAG’s legal assault on Coinseed was based on alleged violations of the Martin Act, a New York anti-fraud law. Under New York State Attorney General Letitia James, the office also used the Martin Act in its pursuit of crypto exchange Bitfinex and stablecoin issuer Tether.

In his message posted on the Coinseed website, Davaasambuu berated principal actors of the NYAG, including former New York State Attorney General Eric Schneiderman. The Coinseed chief accused the NYAG of double standards in its pursuit of the company.

Back in February, the Coinseed CEO dismissed the NYAG’s case against the company, stating that United States citizens were not involved in its 2017 initial coin offering.

Davaasambuu also accused the NYAG of profiting from the lack of clear-cut regulations in the state as a means of extorting settlement payments from cryptocurrency firms.

The Coinseed closure comes as the company no longer has access to payment providers following the NYAG lawsuit. Davaasambuu promised to return user funds at a later date.

As part of the closure announcement, the Coinseed boss also revealed an ERC-20 token seemingly created to spite James. Dubbed FuckLetitaJames (FLJ), the token will reportedly be airdropped to interested persons.