August 2, 2021

Coinseed converted users' funds into DOGE without their knowledge

Coinseed converted users' funds into DOGE without their knowledge

Clients of cryptocurrency service Coinseed accuse the company of an exit scam after converting their deposits to Dogecoin without their consent.

On the r / CoinseedSCAM subreddit, about 50 users are discussing the possibility of teaming up to file a class action lawsuit against the Coinseed app.

Users of a New York-based firmfailed to withdraw their investments, instead their accounts were converted to DOGE and frozen. Unlucky investors could do nothing but watch Dogecoin roll back 30% after a prolonged pump.

At the beginning of the year, Coinseed was already embroiled in similar litigation with regulators. Complaints about inconsistent conversions to other cryptocurrencies began to arrive on April 16.

United States Securities and Exchange Commission andThe New York State Attorney's Office (NYAG) accused the company of providing investors with false information about an investment product. According to agencies, Coinseed tricked investors into buying a worthless token worth $ 1 million.

In addition, the company claimed that among itsexecutives one of the former Wall Street sharks, who works in "several firms, brokerage, dealer and economic advisory firms, specializing in the analysis of securities."

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