A crypto-trading platform being sued for fraud by New York stands accused of moving all of its clients’ assets into dogecoin without telling them

A crypto-trading platform being sued for fraud by New York stands accused of moving all of its clients’ assets into dogecoin without telling them

New York Attorney General Letitia James on May 6 took legal action to . The state AG alleges that Coinseed allocated investors' money into dogecoin without permission. Per the first viewed by , Coinseed on April 16 converted all investor assets into bitcoin "without notice or authorization" and disabled all functionality in the application, so that they will not be able to withdraw their money. In the evening of the same day, Coinseed traded the bitcoins for dogecoin, described as "an extremely volatile virtual currency" in the filing, and which at that time was experiencing a sharp selloff. "[The Office of Attorney General] has received dozens of complaints from investors describing that [Coinseed] conducted these unauthorized trades and transferred all investor assets into dogecoin," the filing said. An example of an investor complaint on April 17 was included. The investor alleged that Coinseed transferred all his cryptocurrency to dogecoin without his permission and blocked his ability to withdraw his money. From a $20,000 balance the night before, he said the transfer to dogecoin immediately dropped his balance to $7,000. Four other complaints followed a similar narrative. "Unregulated and fraudulent virtual currency trading platforms have no place in New York," the