New York attorney general secures receiver for crypto firm
A receiver has been appointed for Coinseed, which is facing allegations from U.S. authorities
- By: James Langton
New York’s attorney general has obtained an order appointing a receiver to oversee crypto trading firm Coinseed Inc., which is allegedly operating illegally.
Letitia James, the state’s attorney general, has secured a court order that appoints a receiver — Michelle Gitlitz, the global head of Crowell & Moring LLP’s blockchain and digital assets practice — to safeguard investors’ assets.
Back in February, the AG’s office filed a lawsuit against Coinseed and its founder and CEO, Delgerdalai Davaasambuu, alleging that the firm operated as an unregistered commodities broker-dealer through its mobile app, among other infractions.
Now, citing ongoing fraudulent conduct, the AG has secured court-appointed oversight of Coinseed.
“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 release. “This order appoints a court-appointed receiver before any other investments are squandered by Coinseed and its CEO.”
The U.S. Securities and Exchange Commission also charged Coinseed and Davaasambuu in federal district court in Manhattan back in February, alleging that they violated securities rules by selling unregistered digital assets. Those allegations have not been proven.
In Canada, the Ontario Securities Commission has also recently started bringing enforcement cases against offshore crypto trading platforms, alleging that they are violating securities rules by engaging in unregistered trading in securities and derivatives.