Coinseed users intend to file a class-action lawsuit against the firm, as it has changed their funds into Dogecoin tokens without their permission. In addition to the fund conversion, the users of the investment platform are allegedly not able to process their withdrawals.
Users of Coinseed Had Their Funds Converted to DOGE Without Their Permission
Crypto platform Coinseed has been accused of converting their client funds into Dogecoin tokens without their authorization and that the platform won’t process their withdrawals.
The customers of the platform are not able to do anything about it except watch the crashing Dogecoin market, which had crashed by 30% in the past week.
Taking into consideration, around 50 people are planning to file a class-action lawsuit against the company.
In addition, users have also created r/CoinseedSCAM, a subreddit that angry customers set up to vent on their frustration and coordinate a response. In a Facebook group of the same name, two customers have revealed on losing over $100,000, including others for lesser sums.
According to them, not only the possibility of exchanging tokens is now unavailable to them, but the funds’ withdrawal functionality along with a host of other features is now gone.
Now more than 50 people have threatened to file a class-action lawsuit against the crypto investment platform.
Clients started submitting complaints on April 16th claiming that the company did not consider it necessary to inform them about the conversion of their life savings into the DOGE token.
Coinseed’s Long List of Fraud Cases
Coinseed has a background of doing illicit activities.
In February, the New York State Attorney’s Office (NYAG) charged the platform as well as its executive team for defrauding investors of more than $1 million.
Meanwhile, the U.S. Securities and Exchange Commission (SEC) has also filed a lawsuit against Coinseed. One of the directors was reputed to of someone with experience in stock trading on Wall Street. But the regulatory agency soon found out that he never even sold shares or commodities.