NYAG closes Coinseed, which converts customer funds into DOGE with no consent

After complaints that client funds were converted to DOGE without their consent, Letitia James, New York Attorney General, has ended operations for Coinseed. New York Attorney General Letitia James has won a victory against cryptocurrency exchange Coinseed over its dodgy dealings and defrauding customers. After being accused of converting client funds into Dogecoin without consent and freezing withdrawals, Letitia James, the NYAG, ordered Coinseed Inc. to cease operations permanently and pay $3,000,000 in fines. Bloomberg reports that the exchange also emptied its bank account and issued unlicensed securities. It was accused of converting client funds into Dogecoin (DOGE) without consent and freezing withdrawals. The U.S. Securities and Exchange Commission filed a suit against the company in June for trading commodities without being registered as a broker-dealer and misleading investors. Amita Singh and Assistant Attorney General Brian Whitehurst reported that Coinseed customers had filed 170 complaints against the firm. They claimed that they had traded commodities without being registered as broker-dealers and misinforming investors. In a related legal victory, Michael Ackerman pleaded guilty on Sept. 10 to wire fraud in a scheme he ran with two other people in 2017. The trio was responsible for the Q3 Trading Club, which promised 15% monthly returns. If convicted, he faces 20 years imprisonment for causing investor losses up to $30 million.

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