The New York Attorney General (NYAG) has won a victory against crypto exchange Coinseed for its dodgy dealings with Dogecoin (DOGE) and defrauding its customers.

On Mon, NYAG Letitia James ordered Coinseed Inc. to permanently halt operations and pay $3 meg in fines after information technology had been defendant of freezing withdrawals and converting customer funds into DOGE without consent. The exchange also emptied its bank accounts and issued unlicensed securities, according to Bloomberg.

Despite previous courtroom orders ordering Coinseed to cease operations, James also constitute that the company continued to partake in "egregious and fraudulent activities," while the case was ongoing, according to Law360:

"In defiance of court orders, this company has continued to operate illegally and unethically, property investors' funds hostage and underscoring the dangers of investing in unregistered virtual currencies."

The exchange purported to shutter its services in June following a temporary restraining order.

In February, James sued Coinseed and its founder, Delgerdalai Davaasambuu, for defrauding thousands of investors out of more than $1 million. The Usa Securities and Exchange Commission besides hit the firm with a suit that same month for allegedly trading commodities without registering as a banker-dealer and misinforming investors.

Assistant attorneys general Brian Whitehurst and Amita Singh accept since reported receiving 170 complaints from Coinseed customers claiming that their wallet balances had shrunk by "tens of thousands of dollars" since February.

Davaasambuu had previously promised to return user funds merely has been "completely radio silent" about the allegations, co-ordinate to Singh.

Related: NY attorney general warns investors and crypto firms of 'extreme risks'

In a related legal triumph on Fri, Michael Ackerman pleaded guilty to wire fraud in a scam he orchestrated with ii others in 2022.

The trio ran the Q3 Trading Society, promising xv% monthly returns at the time. He pleaded guilty to causing investor losses of as much as $thirty one thousand thousand and faces 20 years imprisonment if convicted in a Jan 2022 sentencing.