Share this article
NY Attorney General Moves to Shut Down Crypto App Coinseed Over Fraud Claims
The action follows allegations of fraud against the app in February.
By Danny Nelson
Updated Sep 14, 2021, 12:52 p.m. Published May 7, 2021, 1:57 p.m.
New York state Attorney General Letitia James has moved to shut down automated crypto trading app Coinseed for allegedly continuing to defraud its users even as it faced pressure on multiple legal fronts.
STORY CONTINUES BELOW
- Alleging continued fraud and citing new evidence, James filed a court motion on Thursday to freeze Coinseed’s trading activity and halt all operations.
- In February, James accused Coinseed of bilking $1 million from investors through hidden fees, false claims and a flopped token. The U.S. Securities and Exchange Commission (SEC) hit Coinseed with token registration violations in a parallel suit.
- Coinseed CEO Delgerdalai Davaasambuu, who is named in the NYAG suit, did not immediately respond to a request for comment from CoinDesk.
- The new evidence includes allegations of unauthorized trading activity, filings show.
- Multiple users told James their crypto balances were converted to dogecoin without their consent. One said his $48,000 position became around $31,000 in DOGE without his knowledge:
Read more: Automated Crypto Investing App Coinseed Faces Fraud Charges in NY, SEC Lawsuits
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Five Crypto Firms Win Initial Approvals as Trust Banks, Including Ripple, Circle, BitGo
The firms have obtained conditional approval from the Office of the Comptroller of the Currency to convert into national trust banks.
What to know:
- Crypto firms Circle, Ripple, Fidelity Digital Assets, BitGo and Paxos received conditional approval by the OCC to become federally chartered banks.
- The move sets up firms to follow in the footsteps of Anchorage Digital, the first to get a federal bank charter in the U.S.
- A slew of stablecoin issuers and crypto firms, including Coinbase, filed for federal oversight after GENIUS Act was written into law.
Top Stories
