Coinseed Converted Clients' Money To DOGE Without Their Consent

Clients of the investment platform Coinseed intend to file a class-action lawsuit on the grounds that firm representatives changed their funds into DOGE tokens without their knowledge.

Just a couple of weeks ago, the transfer of other altcoins to Dogecoin would have pleased almost any member of the community, given the recent explosive growth of the token. Now, however, investors who have been transferred to DOGE are furious with Coinseed's strategy. Since the asset managed to double in price over the last week from $0.40 on April 20 to $0.20 on April 23. After that, it has grown slightly and is now trading at $0.27 on the Binance exchange.

Clients started submitting complaints on April 16th. In them, they all claim that the company did not consider it necessary to inform them about the conversion of part or all of the deposit into DOGE. Now more than 50 people have expressed a desire to create a class-action lawsuit against the New York company. In addition, users have created a subreddit r CoinseedSCAM, telling them more about their monetary losses. According to them, not only the possibility of exchanging tokens is now unavailable to them, but also some of the other functions of the application (including the withdrawal of funds), which looks really suspicious.

The total amount of the losses of two customers who unsubscribed on the topic on Reddit were more than $100,000. However, in addition to them, there are dozens of people who are outraged by the behavior of people, whose amounts, although they were less, remain an equally important precedent.

Unfortunately for defrauded investors, their case is unlikely to get off the ground quickly, as this is not the first time Coinseed has been making headlines. This winter, the NY Attorney and the SEC accused the company of false information about managers, and NYAG, in turn, added that Coinseed received more than $1M from investors in 2017 by selling CSD tokens during an ICO. In addition, one of the directors was positioned as someone with experience in stock trading on Wall Street. But the New York attorney found out that he never sold shares or commodities.

Then director of the startup assured that the lawsuit consisted of false accusations. However, now the heads of the company do not even get in touch with their lawyers. Because of what they want to terminate the agreement with Coinseed representatives.

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