The US Securities and Exchange Commission (SEC) has charged Unicoin, Inc. and its senior leadership with deceiving investors through exaggerated fundraising claims and false assurances about their crypto token. The SEC’s lawsuit alleges that Unicoin’s reported capital raise and asset backing were significantly overstated.
Federal regulators are intensifying their scrutiny of the crypto industry, highlighting Unicoin and its executives over alleged securities violations. As the case unfolds, various perspectives from both regulators and company leaders are surfacing in public discussions.
SEC Alleges Investor Deception by Unicoin
The SEC has filed an enforcement action against Unicoin, Inc., and several top executives. According to the SEC’s press release, the agency alleges that Unicoin made false statements, presenting its crypto token as more secure and profitable than it actually was. Central to the case are accusations that Unicoin vastly overstated both the amount of money raised and the value of the assets backing its cryptocurrency.
The complaint claims Unicoin publicly stated it had raised $3 billion. However, the regulators found that “only ~$110 million [was] raised, not $3 billion as advertised.”
In addition, Unicoin’s leadership allegedly promoted the token as being “backed by billions in real estate.” But there is insufficient evidence for these claims.
“The SEC has charged Unicoin and execs including CEO Alex Konanykhin and Silvina Moschini for allegedly defrauding 5,000+ investors with false and misleading claims that its crypto token was backed by billions in real estate. SEC says only ~$110 million raised, not $3 billion as advertised,” Eleanor Terrett said.
Allegedly, more than 5,000 investors may have relied on these misleading statements. Of particular concern was the false claim that Unicoin’s offering was SEC-registered—an assertion the SEC has disputed.
The agency is now seeking a range of legal remedies, including restrictions on future activity by the company and its executives, civil penalties, and bans from serving as officers or directors of public companies.
“Unicoin’s most senior executives are alleged to have perpetuated the fraud, and today’s action seeks accountability for their conduct,” Mark Cave, Associate Director in the SEC’s Division of Enforcement said.
Questions About Asset Backing and Regulatory Status
The SEC’s filings explain that Unicoin promoted its token as tied to substantial real estate assets. The company assured investors that these holdings would protect their funds. However, the SEC alleges these promises were either false or significantly exaggerated—a critical issue, as crypto projects often rely on claims of asset backing to boost market confidence.
Similarly, the SEC accuses Unicoin of misrepresenting the regulatory status of its token sale. The SEC argues that the offering was not registered as required, despite public suggestions to the contrary. This, regulators claim, created a misleading impression of legitimacy and safety that may have drawn in cautious investors.
These allegations underscore what federal authorities describe as a recurring problem in crypto fundraising: unverified claims about asset backing and lapses in regulatory compliance. Regulators are emphasizing the risks associated with such claims and the importance of adhering to securities laws.
After the SEC’s complaint, Unicoin’s executives quickly denied the allegations. CEO Alex Konanykhin maintains that his company acted appropriately and welcomes the chance to defend Unicoin against the SEC’s claims.
“The SEC charges are crudely fabricated,” Konanykhin said.
Konanykhin’s public statements echo his previous interviews, where he consistently rejected any suggestion of wrongdoing. As a result, the next developments in this case are likely to emerge through legal proceedings, where both sides will present their evidence.
eToro
eToro
eToro
eToro
YouHodler
Arkham
Wirex
NEXO
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
