This is an update to our previous posts about the cases that the SEC and New York State Attorney General brought against Coinseed, a company that purported to offer a mobile investment application that enabled users to invest in digital assets. On September 13, 2021, the NY Attorney General announced that her office had obtained a judgment permanently enjoining Coinseed’s operations. It was a default judgment.
According to the AG, after a preliminary injunction had been entered, 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 the original Complaint. The judgment appointed a court receiver to obtain, safeguard, and return all assets invested and traded through Coinseed and ordered a $3 million money judgment against the defendants.
