The Securities and Exchange Commission has announced charges against Coinseed and its co-founder and CEO, Delgerdalai Davaasambuu, in connection with Coinseed’s offer and sale of digital asset securities.
According to Coinseed’s website, the company offers Apps on both the Apple App Store as well as Google Play that “helps you grow your crypto assets through auto-investing, trading and earn interest on your crypto from DeFi platforms.”
The SEC’s complaint alleges that, from at least December 2017 to May 2018, Coinseed and Davaasambuu sold digital asset securities called “CSD tokens” to investors, including investors based in the US. The SEC’s complaint alleges that Coinseed and Davaasambuu did not file a registration statement for the offering, and that the offering failed to satisfy any exemption from registration.
The Coinseed offering is said to have raised at least $141,410.
The SEC’s complaint charges Coinseed and Davaasambuu with violating the registration provisions of Sections 5(a) and 5(c) of the Securities Act of 1933. The SEC seeks permanent injunctive relief, disgorgement plus prejudgment interest, and civil penalties.