EddieJayonCrypto
21 May 25
The U.S. Securities and Exchange Commission charged New York-based Unicoin and three executives with misleading investors and raising over $100 million through false claims about crypto asset offerings and company stock. The SEC alleges Unicoin falsely claimed its tokens were backed by valuable real...
The U.S. Securities and Exchange Commission (SEC) charged New York-based Unicoin and three top executives with misleading investors and raising over $100 million through false claims about crypto asset offerings and company stock. The SEC's complaint alleges that Unicoin falsely represented its tokens as backed by valuable real estate holdings, which were actually worth only a fraction of the claimed amount. Unicoin also misled investors by falsely claiming its tokens were registered with the SEC and overstated the amount raised from rights certificate sales by billions, having raised just over $110 million instead of the claimed $3 billion. The key figures named in the complaint include CEO Alex Konanykhin, board member Silvina Moschini, former Chief Investment Officer Alex Dominguez, and general counsel Richard Devlin. Devlin agreed to pay a penalty and accept a permanent injunction without admitting wrongdoing. CEO Alex Konanykhin denies all charges, describing them as persecution by prior SEC officials and pledges to fight the allegations vigorously in court. The SEC seeks a variety of remedies against the defendants, including injunctive relief, disgorgement of ill-gotten gains, civil penalties, and bans from serving as officers or directors of companies. Unicoin reportedly used widespread advertising, including airport and taxi ads and television spots, to promote the tokens as "next generation" secure investments, attracting thousands of investors. This case comes amid a broader regulatory shift, with the SEC stepping back from some high-profile crypto enforcement actions seen under previous leadership. The SEC claims Konanykhin personally sold nearly 38 million rights certificates to investors who were barred from participation, further underscoring the alleged misconduct. As the lawsuit unfolds, it highlights ongoing tensions between cryptocurrency firms and regulators about transparency, investor protection, and the true value backing digital assets.