New York state’s Supreme Court has granted an injunction and ordered US$3 million in restitution against crypto trading platform Coinseed Inc. and its founder Delgerdalai Davaasambuu.

The court granted a motion from New York state Attorney General Letitia James against Coinseed and its founder and CEO, permanently banning them from operating in the state and ordering a monetary judgment against both.

Earlier this year, the court appointed a receiver — Michelle Gitlitz, the global head of blockchain and digital assets at Crowell & Moring LLP — to oversee the firm. Now, the court has granted the receiver the authority to liquidate its assets.

“For years, Coinseed and its CEO have engaged in egregious and fraudulent activities that have cheated investors out of millions,” said James in a release.

“In defiance of court orders, this company has continued to operate illegally and unethically, holding investors’ funds hostage and underscoring the dangers of investing in unregistered virtual currencies. We will continue to pursue all who attempt to abuse and manipulate the system and ensure investors are protected,” she added.

The New York attorney general’s office filed a lawsuit against Coinseed and Davaasambuu back in February, alleging that they’d defrauded investors out of millions. At the same time, the U.S. Securities and Exchange Commission (SEC) alleged that they violated U.S. securities laws.

The allegations have not been proven.

“In the months since the suit was filed, Coinseed and its CEO have continued their fraud and commenced additional fraudulent conduct by trading in investors’ accounts without permission and then blocking investors from accessing those accounts,” the attorney general’s office said, adding that Davaasambuu and the firm also created and sold a new virtual currency to investors in defiance of a preliminary injunction.