CITIZENS NEWS

SEC charges Unicoin and top executives in massive $100M crypto securities fraud

By isabelle // 2025-05-21

• The SEC charged Unicoin and three executives with a $100M fraud, alleging false claims about real estate-backed tokens and inflated financial projections.
• Regulators say Unicoin misled investors by exaggerating asset values and falsely advertising SEC registration.
• CEO Alex Konanykhin rejected a settlement, vowing to fight the SEC’s allegations and claiming the investigation caused "multi-billion-dollar damages" to the company.
• The case highlights risks in crypto, with Unicoin’s aggressive marketing masking what the SEC calls a "massive securities fraud."
• The SEC seeks penalties and injunctions, reinforcing its crackdown on crypto fraud as a warning to investors and companies about transparency and compliance.

The U.S. Securities and Exchange Commission (SEC) has charged cryptocurrency platform Unicoin and three of its top executives with orchestrating a $100 million fraud, misleading thousands of investors with false claims about real estate-backed tokens and inflated financial projections. The case, filed in Manhattan federal court, alleges that CEO Alex Konanykhin, board member Silvina Moschini, and former investment chief Alex Dominguez deceived investors by exaggerating the value of assets, misrepresenting sales figures, and falsely advertising SEC registration. The SEC’s complaint paints a damning picture of a company that allegedly lured investors with promises of high returns while concealing the true state of its finances. According to regulators, Unicoin’s claims of owning a $1.4 billion international real estate portfolio were grossly inflated. The actual value of the properties was no more than $300 million, and many transactions never closed.

False promises and inflated claims

The SEC’s Division of Enforcement associate director, Mark Cave, stated that Unicoin “exploited thousands of investors with fictitious promises that its tokens, when issued, would be backed by real-world assets including an international portfolio of valuable real estate holdings.” However, the agency alleges that the properties were worth only a fraction of what was claimed, and most of the company’s reported sales were “illusory.” Among the most egregious allegations is that Unicoin falsely advertised $3 billion in rights certificate sales when, in reality, it had only sold $110 million. The company also allegedly misled investors by claiming its offerings were SEC-registered — a key selling point for those seeking legitimacy in the volatile crypto market.

Executives reject settlement, vow to fight

Unicoin’s CEO, Alex Konanykhin, had previously signaled his intent to challenge the SEC’s allegations. In April, he revealed that the company had received a Wells notice — a formal warning of impending charges — in December 2024 but refused to attend a settlement negotiation, calling the SEC’s demands “unacceptable.” “We declined to show up,” Konanykhin told CoinDesk in an interview, claiming the SEC’s investigation had caused “multi-billion-dollar damages” to Unicoin. Despite the Trump administration’s more lenient stance toward crypto enforcement, the SEC has continued its crackdown, with Unicoin now facing demands for disgorgement, civil penalties, and officer-and-director bans for its executives.

A cautionary tale for crypto investors

The case serves as a reminder of the risks in the largely unregulated crypto space, where flashy marketing and bold claims can obscure financial realities. Unicoin’s aggressive advertising — including taxi cab ads in Manhattan, digital billboards, and social media posts promising returns of up to 9,000,000% — appears to have been a smokescreen for what the SEC calls a “massive securities fraud.” While Unicoin has positioned itself as an “America First” crypto firm, its legal troubles cast doubt on its future. The SEC’s pursuit of permanent injunctions and financial penalties underscores the agency’s commitment to holding bad actors accountable, even as the regulatory landscape shifts. For now, investors are left to wonder whether they will recover any of their funds and whether Unicoin’s executives will face further consequences. As the case unfolds, it stands as a warning to both crypto entrepreneurs and investors: transparency and compliance are non-negotiable in an industry still struggling to earn mainstream trust. The SEC’s case against Unicoin highlights the ongoing battle against fraud in the cryptocurrency sector. With regulators intensifying scrutiny, companies that mislead investors, whether through false asset claims or exaggerated financial projections, are increasingly at risk of severe penalties. For those who believed in Unicoin’s promises, the fallout is a painful lesson in the importance of due diligence. As the crypto market evolves, accountability will be key to ensuring its long-term viability. Sources for this article include: CoinTelegraph.com Reuters.com CoinDesk.com

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