The US Securities and Exchange Commission (SEC) accused Cryptocurrency Startup Unicoin and its best executives of orchestrating a huge fraud scheme.
The SEC claims that they have picked up more than $ 100 million from thousands of investors who use false promises about tokens and blown -up fundraising figures covered by assets.
A crypto -dream built on illusions?
The SECs 77 pages complaintsubmitted on May 20 in the southern district of New York, concentrates on A regulation reportedly devised by CEO Alex Konanykhin and senior executives Silvina Moschini and Alex Dominguez.
The SEC claims that Unicoin has misled more than 5,000 investors by ‘law certificates’ as safe investments supported by assets, promises that the underlying tokens were protected by billions of dollars in real estate and stock assets. In reality, the assets were appreciated to support these promises on only a fraction of what Unicoin advertised.
“We claim that Unicoin and his managers have used thousands of investors with fictional promises,” said Mark Cave, associate director at SEC Enforcement. “The majority of the sale of rights of rights was illusory.”
From billion dollars claims to fractional realities
The investigation of the SEC revealed grim discrepancies between the claims of Unicoin and the reality. Although he had a turnover of $ 3 billion, the SEC says that Unicoin has collected no more than $ 110 million. Moreover, the tokens, depicted as a full SEC-registered, never formally registered, compound accusations of misleading retail investors.
CEO Alex Konanykhin personally sold nearly 38 million rights certificates, aimed at investors who are otherwise prohibited by company rules. The SEC claims that these actions have brought the federal securities laws directly.
The aggressive marketing tactics of Unicoin are now under intensive research. The company ran spectacular advertisements on thousands of taxis in New York City, airport screens, televisions and social media platforms and promotes its tokens as safe investments associated with substantial real-world assets.
The SEC calls these widespread marketing campaigns as proof of misleading intention. Unicoin was launched in addition to a TV program in a shark tank style, Unicorn Hunters, with co-founder of Apple Steve Wozniak and political adviser Moe Vela, who spoke with CryptoSlate At that time.
Konanykhin responded challenging and claimed that the intervention of the SEC derailed the growth process of the company. “We would probably be a $ 10B+ listed company, now if the SEC had not blocked our ICO,” he told Decrypt and described the charges as a politically motivated movement orchestrated by “rogue officials” from the former SEC chairman Gary Gsler’s administration.
Regular pressure in a changing SEC environment
This case emerges as a crucial test of the enforcement of the SEC under chairman Paul Atkins, generally considered to accept a softer attitude towards cryptocurrency. However, the charges of Unicoin suggest that significant stores fraud, in particular with exaggerated assets claims, remains straightforward in the sights of the regulator.
In particular, the general counsel for Unicoin, Richard Devlin, has already arranged already with the SEC, agreement with a permanent order and a fine of $ 37,500 pays. This regulation refers to possible fractures within the defense strategy of Unicoin while the legal battle unfolds.
The SEC strives to permanently prohibit Konanykhin, Moschini and Dominguez to keep officials or director positions, in addition to financial fines and disgorgement of profit. The extent of the loss of investors remains unclear and the early stages of court cases could see Unicoin attempt to provide or ask for changes to the location.
The outcome of this case raises questions about the future legal treatment of tokens covered by assets and influences the current congress discussions on potential crypto-carve-outs.
Chronology of events
- Dec 2024: SEC gives Wells notification to Unicoin.
- April 18, 2025: Settlement meeting planned; Company no-shows.
- April 22, 2025: CEO Konanykhin publicly rejects the supply of the settlement.
- May 20, 2025: Sec formally complaints.
With billions at stake and the reputation on the line, the unfolding legal drama of Unicoin will reveal how far regulations go to reduce crypto regulations, whether flashy marketing is now viable, whether crypto is back in the ‘Wild West’ and whether the SEC will make Unicoin an example.
CryptoSlate has contacted various members of the Unicoin team, but did not receive a response at the time of press.