N.Y. Attorney General Sues Coinseed for Defrauding Investors

New York’s attorney general filed a lawsuit to shut down the cryptocurrency platform Coinseed Inc. for allegedly defrauding thousands of investors, including by charging hidden trading fees and selling “worthless” digital tokens. Attorney General Letitia James said Coinseed traded cryptocurrencies such as bitcoin without registering as a broker-dealer, and sold “CSD” tokens without authorization to raise money for its mobile application startup.