Coinseed
A mobile crypto-investing app that the SEC and New York AG said was fraudulent: it sold unregistered 'CSD' tokens, misrepresented its management, charged hidden fees, and traded in customers' accounts without permission. A NY court shut it down in 2021 with a $3M judgment against CEO Delgerdalai Davaasambuu.
Also known as: Coinseed, CSD token
Summary
Coinseed offered a mobile app that purported to let users invest in digital assets. The SEC (Feb 2021) said Coinseed and CEO Delgerdalai Davaasambuu sold unregistered "CSD" token securities (2017–2018). The New York Attorney General alleged broader fraud — hidden fees, fabricated management credentials, acting as an unregistered broker-dealer, and trading in customers' accounts without permission (then blocking access) — costing investors on the order of $1M+. [1][2]
Outcome
In September 2021, a New York court shut Coinseed down, appointed a receiver, and entered a $3 million judgment against the company and Davaasambuu. (Former CFO Sukhbat Lkhagvadorj was also named.) These were civil actions. [1][2]
Bracketed numbers refer to the numbered sources listed below.
People & entities involved
Sources (2)
- SEC Charges Digital Asset Trading Platform Coinseed and Its CEO — U.S. SEC
- AG James Shuts Down Coinseed; $3M Judgment Against CEO — New York Attorney General
See also
World Liberty Financial (WLFI) — Justin Sun token freezeProjectsWLFI, a DeFi project linked to Donald Trump and his family, blacklisted/froze the wallet of major investor Justin Sun in Sept 2025 — ~540–595M unlocked WLFI tokens (~$107M) plus ~2.4B locked. Sun sued, alleging an undisclosed admin 'blacklist backdoor'; WLFI denied it and threatened a countersuit. The dispute is ongoing.
Gala Games exploitTokensOn May 20, 2024 an attacker abused a privileged minter account on the GALA token contract to mint 5 billion GALA (≈$200M+ nominal) and dumped ~600M of them for ~$22M of ETH before Gala froze the address. Gala Games called it an internal access-control failure; the attacker later returned the ~$22M.
This page was last updated on Jun 15, 2026. View revision history.
