Coinseed, a crypto savings app, has allegedly, converted the deposits of their customers to Dogecoin, according to the customers and the afoemntioned was done without their consent and which make their withdrawal difficult.
Dogecoin’s market is crashing and which tanked by 30% last week. However, due to the fact that the customers of Coinseed cannot do anything, other than watch the crashing of the Dogecoin market, their savings have been wiped away.
“This entire thing has made me pretty sick,” said Ace201613 on r/CoinseedSCAM, a subreddit that angry customers set up to log their fury and to coordinate a response. In a Facebook group of the same name, two customers report losses of over $100,000, and dozens for lesser sums. Incensed, around 50 Facebook users have expressed interest in a class-action lawsuit against Coinseed. A Coinseed spokesman could not be reached for comment.
The angry investors better get in line. In February, the US Securities and Exchange Commission and the New York Attorney General pressed charges against the firm for allegedly defrauding investors into buying a worthless token and lying about the expertise of its executives. The NYAG claimed Coinseed fraudulently took $1 million from investors in a token sale. Coinseed’s social media feeds have gone dark since the filings, and its app is no longer listed on Apple’s or Google’s app stores.