Coinseed accused of embezzling funds
Perhaps the second most popular topic of our articles after digital security is litigation with Blockchain companies. Organizations regularly face claims at the state level. Sometimes the accusations made have no basis other than the desire to oppress the crypto industry. But sometimes it comes to really valid claims. We will talk about this. A New York court today brought charges against digital company Coinseed. The organization is suspected of embezzling $ 1 million. Next, we will tell you everything that is known about the positions of the parties and consider this conflict in detail. So let’s get started.
About company. What are organizations charged with?
First, let us remind those who do not know that Coinseed is a young and fairly progressive project. The organization is developing and supporting its own investment application for smartphones. An enterprise solution allows you to automate many of the processes associated with digital investments. A useful enough concept. Coinseed once loudly announced the seriousness of its own intentions. The project received financial support and developed quietly. Up to this day. A paper with corresponding claims appeared on the website of the New York Attorney’s Office.
According to the published information, the company is suspected of stealing a whole million dollars. According to the prosecution, Coinseed systematically deceived its users. And, due to misleading, he earned illegal money. The prosecutor’s office believes that the coins that were handed over to investors for an investment are fictitious. Based on the information posted, Coinseed allegedly was not properly registered to distribute its tokens.
In addition, doubts are raised about the professionalism of employees. According to prosecutors, one of the Coinseed developers positioned himself as a former Wall Street trader. However, in reality, there is no evidence that this person worked with securities. The charge has already been backed by the US Securities Commission. That is, as you understand, the project found itself in a rather difficult situation. But representatives of the project have already come forward with a response. The content of which we will discuss in the next section.
What are Coinseed representatives saying?
In fact, the responses are rather ambiguous. Regarding the accusation of financial fraud, the project representatives answered specifically. According to them, tokens were never distributed in the United States. This means that registration as a securities dealer is optional. But there were no counterarguments to the accusations regarding the past developer. However, it is quite possible that we will see a detailed analysis of each line of the accusation very soon. One way or another, but the creators of the project strongly disagree with the position of the state. According to them, the accusations made are full of fictitious information that does not correspond to reality.
However, if the truth turns out to be on the side of the prosecutor’s office and the SEC, Coinseed will be in complete disaster. Investors are very wary of the reputation of those projects with which they start cooperation. This is why the possibility of Coinseed closing cannot be ruled out. The main thing is not to panic. The situation is really difficult. For Coinseed users, we advise you not to take radical action and follow the development of events with us. For the latest information from the world of cryptocurrencies, check our news feed. We publish only high-quality interesting material. Thanks for attention. Good luck!