The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Unicoin, a cryptocurrency company, and three of its executives, including CEO Alexander Konanykhin. The SEC alleges that they violated securities laws by raising over $100 million for a token that was falsely claimed to be backed by real estate.
The SEC’s complaint states that Unicoin had claimed ownership of properties in various locations, including Argentina, Thailand, Antigua, and the Bahamas, with a purported value exceeding $1.4 billion. However, the SEC contends that most of these transactions never actually closed, and the real combined value of the properties was considerably lower, estimated at around $300 million.
Additionally, the agency asserts that Unicoin exaggerated its sales of rights certificates, misleading investors about the actual funds raised. The company claimed to have achieved $3 billion in sales by mid-2024, although the actual figure was below $110 million. The SEC highlighted that Unicoin’s marketing efforts included outrageous returns promised on their investments, reaching up to 9 million percent.
Previously, the SEC had issued a Wells notice to Unicoin in December 2024, indicating the intention to pursue fraud charges. Last month, Konanykhin informed shareholders that they had declined the SEC’s settlement proposal, labeling it as an ultimatum with unacceptable demands.
Despite this legal turmoil, Unicoin maintains that it is fully compliant with regulations as the only U.S.-registered, regulated, and audited cryptocurrency company. The SEC is seeking financial penalties and disgorgement in the ongoing case.
For more details, you can view the SEC’s official press release on the matter here.
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