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
- Bitcoin Latinum (LTNM)TokensA ~$16M token offering (SAFTs for 'Bitcoin Latinum' / LTNM) that the SEC charged in 2026 as fraud: founder Donald Basile falsely called LTNM 'the world's first insured digital asset' backed by an 'existing trust,' neither of which existed, and diverted investor funds for personal use (including a $160,000 horse).
- Loci (LOCIcoin)TokensA 2017–2018 ICO for 'LOCIcoin' tied to the InnVenn IP-search platform. The SEC charged Loci and CEO John Wise with fraud for raising $7.6M on false claims about revenue, headcount, and user base; Wise also misused investor funds. Settled with a $7.6M penalty and an officer/director bar.
- Blockchain Terminal (BCT)Tokens
This page was last updated on Jun 8, 2026. View revision history.