The American Securities and Exchange Commission (SEC) has filed a lawsuit alleging fraud against Unicoin, a crypto investment company, and its senior executives. The lawsuit, initiated in a Manhattan federal court, claims Unicoin lured over 5,000 investors with false promises, raising more than $100 million. According to the SEC, the company systematically misled investors and violated regulations. This case highlights the growing importance of transparency and regulatory oversight within the cryptocurrency industry.
The Illusion of a $100 Million Sale
The SEC alleges that Unicoin’s executives disseminated misleading information about the company’s financial health and crypto offerings. CEO Alex Konanykhin, board member Silvina Moschini, former investment director Alex Dominguez, and legal advisor Richard Devlin reportedly made fraudulent statements, particularly during token sales since 2022.
Unicoin sold certificates to investors, granting rights to tokens expected to be released in the future. These tokens were purportedly backed by an extensive real estate portfolio intended to ensure their value. However, the SEC contends this portfolio was either highly exaggerated or entirely fabricated. Furthermore, the impression given to investors that the products had regulatory approval was unsubstantiated, with no official records to support this claim.
The SEC also revealed that the funds recorded were approximately $100 million, contrary to Unicoin’s purported sum of $3 billion. This discrepancy raises significant doubts about the accuracy of the information provided to investors, with findings pointing to a systematic deception by Unicoin.
SEC and Unicoin: A Growing Tension
The SEC announced that a Wells Notice was sent to the company in December 2024, yet Unicoin refused to settle. Despite no official statement from Unicoin, journalist Eleanor Terrett reported failed negotiations between the parties. CEO Konanykhin described the SEC’s demands as “unacceptable” and expressed readiness for a courtroom battle.
Following this, the SEC reportedly issued new subpoenas to Unicoin affiliates, perceived as retribution by the company. The SEC’s lack of a public explanation suggests more complex dynamics at play behind the scenes.
Experts note that such cases undermine investor confidence in the crypto sector. The Unicoin scenario underscores the importance of investors scrutinizing not just promised securities but also regulatory approvals and the company’s transparency. Observers keenly watch how Unicoin and its leaders approach the trial and the extent to which the SEC’s allegations are validated.
