The US Securities and Exchange Commission (SEC) has officially charged the crypto platform Unicoin and three of its top executives with allegations of fraudulent practices related to the raising of over $100 million from investors. The SEC's complaint, filed in a Manhattan federal court, accuses Unicoin CEO Alex Konanykhin, board member Silvina Moschini, and former investment chief Alex Dominguez of making false and misleading statements about their crypto assets. Specifically, they allegedly misrepresented certificates conveying rights to receive Unicoin tokens and stock, claiming these tokens would be backed by an international portfolio of valuable real estate holdings.
According to Mark Cave, Associate Director of Enforcement at the SEC, the real estate assets purportedly backing the tokens were worth only a fraction of the claims made, and much of the company’s sales of rights certificates were illusory. The complaint includes charges of securities law violations and seeks permanent injunctive relief along with repayment of the proceeds obtained by the alleged fraudulent means.
Despite the serious nature of these allegations against Unicoin, there has been no immediate reported market impact on major cryptocurrencies, and the broader crypto market remains stable as regulatory scrutiny continues. The case aligns with previous SEC enforcement actions targeting crypto-related frauds, often negatively affecting similar token offerings and leading to increased caution in the market. This action by the SEC underscores ongoing regulatory vigilance aimed at protecting investors from misleading claims within the crypto space.