Cryptocurrency service Coinseed was suspected of an exit scam after a series of unauthorized actions. According to the clients of the service in a special thread r / CoinseedSCAM on Reddit, the developers of the project converted their assets into DOGE without demand. Also, users massively complain about the impossibility of withdrawing cryptocurrency from the service.
“I tried to liquidate my portfolio, but received an error message because trading was temporarily disabled. Later I noticed that the entire portfolio was converted to DOGE (without my consent), and there was absolutely nothing I could do about it, ”one of the victims wrote.
According to the service’s official Twitter page, the last post is dated January 2021. At the discretion of the moderators, only individual users can leave comments.
Source: twitter.com
At the time of this writing, Coinseed did not comment on user criticism in any way.
Coinseed is silent
According to preliminary information, the financial damage may amount to more than $ 900 thousand. At the same time, about $ 650 thousand falls on just one user. According to user draeediggler17928, he even visited the street listed on the Coinseed website to check for fraud.
«[…]I just wanted to make sure my money was safe as I intended to use it on a daily basis for my future investments and retirement, ”he wrote.
The first allegations against Coinseed reached the New York Attorney General’s office on April 16. Decrypt came to this conclusion, referring to the report of the law firm Morrison Cohen, representing the interests of Coinseed. According to Jason Gottlieb, partner at Morrison Cohen, the company intends to terminate the contract with Coinseed. The company claims that the crypto firm does not systematically get in touch on “important decisions.”
The exit scam accusations against Coinseed come a couple of months after the US Securities and Exchange Commission accused Coinseed of fraud. The firm is also accused of violating securities laws due to the ICO that Coinseed illegally conducted in 2017.
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