The attorney general of New York scored a victory in its case against crypto investment app Coinseed.
Per a September 13 default judgment, Coinseed and founder Delgerdalai Davaasambuu never even formally responded to the NYAG's initial complaint, filed in February, which accused Coinseed of trading cryptocurrencies in the state without registering as a broker-dealer as required by the Martin Act.
An announcement from attorney general Letitia James said that Coinseed violated a court order in the case from June that was supposed to stop the firm's activities.
Instead, James' office wrote: "Coinseed and its CEO defied that preliminary injunction by creating, offering, and selling a new virtual currency — including to New York investors — and failed to respond to Attorney General James’ complaint."
Coinseed and Davaasambuu now must pay relief of $3,061,511 to investors, as well as assorted court fines. They are also permanently barred from operating as a broker, dealer, advisor or issuer for any commodity or security trading in the state of New York.