Coinseed switched its user’s accounts funds to Dogecoin without their permission and some said that they cannot even withdraw funds so let’s try and find out what exactly happened in our latest DOGE news.
The NYAG and the SEC already pressed charges against Coinseed. The customers of the crypto savings app said that Coinseed switched their deposits to Dogecoin without their consent and will not process their withdrawals. Powerless and unable to reach the company, the users are not able to do anything but watch the crashing DOGE market that dropped 30% in the past week which ended up wiping away their savings.
Redditors discussed the issue in a subreddit where the angry customers are trying to get a response or action. In a Facebook group that has a name similar to the subreddit, two customers reported losses of over $100,000 and plenty others reported lesser sums. About 50 Facebook users expressed interest in launching a class-action lawsuit against coinseed while the company is still not available for comment.
The angry investors should get in line because the US Securities and Exchange Commission as well as the New York Attorney general already pressed charges against the company for defrauding investors into buying a worthless token and lying about the expertise of the executives. The NYAG claimed that Coinseed took $1 million from investors in a token sale that was fraudulent. The social media feeds of the company went dark since the filings and the app is not listed on the apple or google app stores anymore. The NYAG started receiving complaints about the conversions to other crypto assets as well as legal documents filed by Coinseed’s counsel Morrison Cohen outlined.
The lawyers want out of the cases as in a declaration filed last week, Morrison Cohen said that the founders haven’t responded to the communications because of “important decisions” that the company is making at the moment. Cohen announced intentions to cut ties with Coinseed:
“It is clear that the attorney-client relationship has broken down irreparably.”
The Coinseed app allowed customers to invest their spare change in crypto as customers could allocate their money to 17 other cryptocurrencies or crypto lending protocols which Coinseed was supposed to handle as an investment. The SEC filing noted:
“We are looking to build a bridge for the masses to adopt crypto in the most seamless way.”
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