The U.S. SEC has filed charges against Unicoin, a New York City-based crypto firm, and several of its senior executives for allegedly misleading more than 5,000 investors.
According to the commission’s complaint, the company and its leadership engaged in fraudulent activities tied to the offering and promotion of Unicoin tokens and related investment certificates. The individuals named include CEO and Board Chairman Alex Konanykhin, former President and current Board Member Silvina Moschini, and former Chief Investment Officer Alex Dominguez.
The SEC states that Unicoin falsely marketed its digital assets as being backed by a multi-billion-dollar real estate portfolio while only having assets worth a small fraction of that amount.
Extensive Marketing and Unrealistic Asset Claims
Furthermore, the SEC alleges that Unicoin promoted its rights certificates using aggressive marketing campaigns that appeared in airports, on television, across social media platforms, and on thousands of taxis in New York City. These campaigns reportedly positioned the investment as safe, stable, and profitable.
However, the SEC maintains that the underlying tokens were never backed by the claimed billions in real estate or equity interests in pre-IPO companies. The complaint asserts that, contrary to public statements, Unicoin raised no more than $110 million, far below the advertised figure of $3 billion.
Additionally, the SEC claims that Unicoin described the certificates and tokens as “SEC-registered” or “U.S. registered,” despite their unregistered status. These representations allegedly misled investors into believing that the offerings met regulatory requirements.
Alleged Violations and Sales Conduct by Executives
In the filing with the U.S. District Court for the Southern District of New York, the SEC accuses Unicoin and its top officials of violating multiple antifraud provisions under federal securities laws. Konanykhin and the company also face charges for unregistered offers and sales.
The complaint notes that Konanykhin alone offered and sold over 37.9 million of his own rights certificates. These actions offered better pricing, targeted otherwise restricted investors, and protected the company’s exemption status.
Meanwhile, the SEC’s action extends to Unicoin’s general counsel, Richard Devlin. The complaint states that Devlin made misleading statements in private placement memoranda used during Unicoin’s fundraising efforts. Without admitting or denying the allegations, Devlin has consented to a final judgment that includes permanent injunctive relief and a $37,500 civil penalty.
Ongoing Legal Dispute and Denials from Leadership
While the SEC pursues legal remedies, including injunctive relief, disgorgement of ill-gotten gains, and officer-and-director bans, Unicoin’s leadership is preparing to contest the allegations.
In interviews conducted as recently as last month with analyst Eleanor Terrett, CEO Konanykhin denied any wrongdoing. He indicated his intention to challenge the SEC’s complaint in court. The case remains ongoing, with the SEC seeking full accountability for the company’s alleged conduct.
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