NEW YORK (Reuters) - New York’s attorney general filed a lawsuit on Wednesday to shut down the cryptocurrency platform Coinseed Inc for allegedly defrauding thousands of investors, including by charging hidden trading fees and selling “worthless” digital tokens. “I’m 100% sure that the suit is full of false accusations,” Davaasambuu said in an email, referring to James’ lawsuit. “It’s very strange that they’re blaming the very nature of how a startup works.” Lkhagvadorj could not immediately be reached for comment. Both defendants have residences in Long Island City, New York, but Davaasambuu has expressed an intention to return to his native Mongolia, James said. “Unregulated and fraudulent virtual currency entities, no matter how big or small, will no longer be tolerated in New York,” James said in a statement. The attorney general said Coinseed had touted the CSD token as “a great opportunity for young people who want to make money in the crypto market,” and that the mobile app was “guaranteed” to help push its market value higher. “In truth, nearly three years later, the CSD token has not been listed anywhere,” her lawsuit said. James’ lawsuit in Manhattan Supreme Court alleged violations of the Martin Act, a New York state securities law. The SEC’s lawsuit is in Manhattan federal court.