Azoundria at 18:51, 2 May 2023

2023-05-02T18:51:19Z

← Older revision		Revision as of 12:51, 2 May 2023
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	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/coinseeddestroyedbysec.php}}		{{Imported Case Study 2\|source=https://www.quadrigainitiative.com/casestudy/coinseeddestroyedbysec.php}}
	{{Unattributed ~~Citations~~}}		{{Unattributed Sources}}

	[[File:Coinseed.jpg\|thumb\|Coinseed]]Coinseed was a platform founded by two Mongolians based in New York which purported to allow users to invest spare change in cryptocurrency automatically as they made purchases. It also would allow users to automatically choose a balanced growth portfolio. According to reports, the platform quickly ran into issues with banking limits and had to further limit customer deposit amounts. In an effort to finance expansion, they launched an ICO (initial coin offering) in 2017.		[[File:Coinseed.jpg\|thumb\|Coinseed]]Coinseed was a platform founded by two Mongolians based in New York which purported to allow users to invest spare change in cryptocurrency automatically as they made purchases. It also would allow users to automatically choose a balanced growth portfolio. According to reports, the platform quickly ran into issues with banking limits and had to further limit customer deposit amounts. In an effort to finance expansion, they launched an ICO (initial coin offering) in 2017.
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	Regulators in New York came after them in full force, ordering a $3m fine and the platform to be closed. The firm initially had legal counsel, however there are reports of a communication breakdown. In the end result, multiple social media were deleted or disabled and investors were denied any ability to withdraw their funds on the platform. At one point, investors funds in their account were automatically converted to a portfolio based on Dogecoin. The Coinseed platform has not voluntarily returned funds to the reciever general, however there is an alleged plan to distribute the funds via a new Coinseed website. It remains unclear whether any amount will be collectible.		Regulators in New York came after them in full force, ordering a $3m fine and the platform to be closed. The firm initially had legal counsel, however there are reports of a communication breakdown. In the end result, multiple social media were deleted or disabled and investors were denied any ability to withdraw their funds on the platform. At one point, investors funds in their account were automatically converted to a portfolio based on Dogecoin. The Coinseed platform has not voluntarily returned funds to the reciever general, however there is an alleged plan to distribute the funds via a new Coinseed website. It remains unclear whether any amount will be collectible.

	This exchange or platform is based in United States, or the incident targeted people primarily in United States.		This exchange or platform is based in United States, or the incident targeted people primarily in United States.<ref name="reddit-8335" /><ref name="reddit-9028" /><ref name="redditold-9029" /><ref name="decrypt-9030" /><ref name="decrypt-9031" /><ref name="newyorkattorneygeneral-9032" /><ref name="newyorkattorneygeneral-9033" /><ref name="redditold-9034" /><ref name="redditold-9035" /><ref name="redditold-9036" /><ref name="chipin-9037" /><ref name="bitcoinist-9038" /><ref name="techstory-9039" /><ref name="coinseedmedium-9040" /><ref name="coinseedmedium-9041" /><ref name="coinseedmedium-9042" /><ref name="coinseedapptwitter-9043" /><ref name="redditold-9044" /><ref name="redditold-9045" /><ref name="redditold-9046" /><ref name="redditold-9047" /><ref name="redditold-9048" /><ref name="fuckletitajamesarchive-9049" /><ref name="coinseedarchive-9050" /><ref name="coinseedarchive-9051" /><ref name="coindesk-9052" /><ref name="coindesk-9053" /><ref name="redditold-9054" /><ref name="redditold-9055" /><ref name="preview-9056" /><ref name="redditold-9057" /><ref name="reddit-9058" /><ref name="reddit-9059" /><ref name="reddit-9060" /><ref name="reddit-9061" /><ref name="redditold-9062" /><ref name="sec-9063" /><ref name="reddit-9064" /><ref name="reddit-9065" /><ref name="reddit-9066" /><ref name="reddit-9067" /><ref name="reddit-9068" /><ref name="reddit-9069" /><ref name="reddit-9070" /><ref name="reddit-9071" /><ref name="reddit-9072" /><ref name="reddit-9073" /><ref name="reddit-9074" /><ref name="reddit-9075" /><ref name="reddit-9076" /><ref name="reddit-9077" /><ref name="sec-9078" /><ref name="reddit-9079" /><ref name="reddit-9080" /><ref name="reddit-9081" /><ref name="reddit-9082" /><ref name="reddit-9083" /><ref name="reddit-9084" /><ref name="reddit-9085" /><ref name="reddit-9086" /><ref name="reddit-9087" /><ref name="reddit-9088" /><ref name="reddit-9089" /><ref name="reddit-9090" /><ref name="reddit-9091" /><ref name="reddit-9092" /><ref name="redditimage-9093" /><ref name="redditold-9094" /><ref name="businessinsidermarkets-9095" /><ref name="marketrealist-9096" /><ref name="coinseedapptwitter-9097" /><ref name="coinseed-9098" /><ref name="nypost-9099" /><ref name="nypost-9100" /><ref name="coinseedmedium-9101" /><ref name="coinseedmedium-9102" /><ref name="coinseedmedium-9103" /><ref name="coinseedmedium-9104" /><ref name="coinseedmedium-9105" /><ref name="coinseedmedium-9106" /><ref name="coinseedarchive-9107" /><ref name="coinseedarchive-9108" /><ref name="coinseedarchive-9109" /><ref name="reddit-9422" />
	<ref name="reddit-8335" /><ref name="reddit-9028" /><ref name="redditold-9029" /><ref name="decrypt-9030" /><ref name="decrypt-9031" /><ref name="newyorkattorneygeneral-9032" /><ref name="newyorkattorneygeneral-9033" /><ref name="redditold-9034" /><ref name="redditold-9035" /><ref name="redditold-9036" /><ref name="chipin-9037" /><ref name="bitcoinist-9038" /><ref name="techstory-9039" /><ref name="coinseedmedium-9040" /><ref name="coinseedmedium-9041" /><ref name="coinseedmedium-9042" /><ref name="coinseedapptwitter-9043" /><ref name="redditold-9044" /><ref name="redditold-9045" /><ref name="redditold-9046" /><ref name="redditold-9047" /><ref name="redditold-9048" /><ref name="fuckletitajamesarchive-9049" /><ref name="coinseedarchive-9050" /><ref name="coinseedarchive-9051" /><ref name="coindesk-9052" /><ref name="coindesk-9053" /><ref name="redditold-9054" /><ref name="redditold-9055" /><ref name="preview-9056" /><ref name="redditold-9057" /><ref name="reddit-9058" /><ref name="reddit-9059" /><ref name="reddit-9060" /><ref name="reddit-9061" /><ref name="redditold-9062" /><ref name="sec-9063" /><ref name="reddit-9064" /><ref name="reddit-9065" /><ref name="reddit-9066" /><ref name="reddit-9067" /><ref name="reddit-9068" /><ref name="reddit-9069" /><ref name="reddit-9070" /><ref name="reddit-9071" /><ref name="reddit-9072" /><ref name="reddit-9073" /><ref name="reddit-9074" /><ref name="reddit-9075" /><ref name="reddit-9076" /><ref name="reddit-9077" /><ref name="sec-9078" /><ref name="reddit-9079" /><ref name="reddit-9080" /><ref name="reddit-9081" /><ref name="reddit-9082" /><ref name="reddit-9083" /><ref name="reddit-9084" /><ref name="reddit-9085" /><ref name="reddit-9086" /><ref name="reddit-9087" /><ref name="reddit-9088" /><ref name="reddit-9089" /><ref name="reddit-9090" /><ref name="reddit-9091" /><ref name="reddit-9092" /><ref name="redditimage-9093" /><ref name="redditold-9094" /><ref name="businessinsidermarkets-9095" /><ref name="marketrealist-9096" /><ref name="coinseedapptwitter-9097" /><ref name="coinseed-9098" /><ref name="nypost-9099" /><ref name="nypost-9100" /><ref name="coinseedmedium-9101" /><ref name="coinseedmedium-9102" /><ref name="coinseedmedium-9103" /><ref name="coinseedmedium-9104" /><ref name="coinseedmedium-9105" /><ref name="coinseedmedium-9106" /><ref name="coinseedarchive-9107" /><ref name="coinseedarchive-9108" /><ref name="coinseedarchive-9109" /><ref name="reddit-9422" />

	== About Coinseed ==		== About Coinseed ==
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	!Description		!Description
	\|-		\|-
	\|February 17th, 2021 ~~12:00:00 AM~~		\|February 17th, 2021
	\|Main Event		\|Main Event
	\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
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	\|		\|
	\|}		\|}

			== Technical Details ==
			This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?

	== Total Amount Lost ==		== Total Amount Lost ==
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	== Ongoing Developments ==		== Ongoing Developments ==
	What parts of this case are still remaining to be concluded?		What parts of this case are still remaining to be concluded?
			== General Prevention Policies ==
	== Prevention Policies ==
	Funds on the Coinseed platform were stored under the control of a single individual (the CEO), who single-handedly prevented any disbursement or withdrawal actions from occurring. Customers of the platform did not have any visibility to ensure their assets were fully backed with real coins. There was no insurance available to protect against unforeseen failures.		Funds on the Coinseed platform were stored under the control of a single individual (the CEO), who single-handedly prevented any disbursement or withdrawal actions from occurring. Customers of the platform did not have any visibility to ensure their assets were fully backed with real coins. There was no insurance available to protect against unforeseen failures.

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	The regulation fully failed to protect investors in this case, as it failed initially to address the key and primary issue of proper multi-signature wallet setup. By having customer funds in the hands of a single individual CEO, this allowed him to single-handedly hold all investors hostage, as well as perform unauthorized trades on their behalf. A signatory group would be highly unlikely to make a similar decision. Indeed, the CFO and others around him reportedly left the company at the time. Regulators failed to have any funds available to assist affected users, and a lack of dialog between regulators and industry played a key role in the downfall as well, with the case ending in open hostility.		The regulation fully failed to protect investors in this case, as it failed initially to address the key and primary issue of proper multi-signature wallet setup. By having customer funds in the hands of a single individual CEO, this allowed him to single-handedly hold all investors hostage, as well as perform unauthorized trades on their behalf. A signatory group would be highly unlikely to make a similar decision. Indeed, the CFO and others around him reportedly left the company at the time. Regulators failed to have any funds available to assist affected users, and a lack of dialog between regulators and industry played a key role in the downfall as well, with the case ending in open hostility.
			== Individual Prevention Policies ==
			{{Prevention:Individuals:Placeholder}}

			{{Prevention:Individuals:End}}

			== Platform Prevention Policies ==
			{{Prevention:Platforms:Placeholder}}

			{{Prevention:Platforms:End}}

			== Regulatory Prevention Policies ==
			{{Prevention:Regulators:Placeholder}}

			{{Prevention:Regulators:End}}

	== References ==		== References ==

Azoundria at 17:52, 17 February 2023

2023-02-17T17:52:27Z

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Azoundria: Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/coinseeddestroyedbysec.php}} CoinseedCoinseed was a platform founded by two Mongolians based in New York which purported to allow users to invest spare change in cryptocurrency automatically as they made purchases. It also would allow users to automatically choose a balanced growth portfolio. According to reports, the platform quickly ran into issues with banking limits..."

2023-01-25T20:43:43Z

Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/coinseeddestroyedbysec.php}} thumb|CoinseedCoinseed was a platform founded by two Mongolians based in New York which purported to allow users to invest spare change in cryptocurrency automatically as they made purchases. It also would allow users to automatically choose a balanced growth portfolio. According to reports, the platform quickly ran into issues with banking limits..."

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Coinseed Destroyed By SEC - Revision history

Azoundria at 18:51, 2 May 2023

Azoundria at 17:52, 17 February 2023