SEC Sues Unicoin Over $100M Crypto Fraud and Fake Claims

• SEC charged Unicoin and top executives with fraud because of false asset claims.
• The firm overstated property values and claimed $3B in sales, though it raised around $110M.
• Unicoin promoted unregistered securities and exaggerated returns of up to 9 million percent.

Unicoin raised over $100 million from thousands of investors with promises of a token backed by global real estate. But on May 20, the U.S. Securities and Exchange Commission filed fraud charges against the crypto company and its top executives. The lawsuit targets CEO Alex Konanykhin, former board chair Maria Moschini, senior vice-president and general Counsel Richard Devlin, and ex-chief investment officer Alejandro Dominguez.

The SEC filed the complaint in the Southern District of New York. It accused Unicoin of misleading investors with exaggerated property claims. The company promoted “rights certificates” that it said were tied to a valuable real estate portfolio. According to the SEC, many of those property deals never closed.

Executives claimed Unicoin had acquired assets in Argentina, Thailand, Antigua, and the Bahamas. They said these were worth more than $1.4 billion. But the SEC said the true value was closer to $300 million.

Unicoin also claimed to have raised over $3 billion in sales by June 2024. In reality, it only raised about $110 million. Over 5,000 investors bought into the offering, many believing real assets backed it. The SEC said the company also misled investors about being SEC-compliant. The certificates were never registered and did not qualify for exemptions.

The agency said Unicoin advertised potential returns of up to 9 million percent. The claims referenced early Bitcoin gains and urged investors to act fast. These messages appeared across taxis, ferries, TV shows, digital billboards, and elevators.

Unicoin also issued airdrops without verifying investor qualifications. The SEC said this violated federal securities rules. CEO Konanykhin allegedly approved the sale of 38 million rights certificates despite regulatory risks. The SEC noted Richard Devlin helped facilitate the fraud. Devlin has since settled with the SEC. He paid a $37,500 penalty and accepted a permanent injunction.

Related: Two-Year Prison Term Recommended for SEC X Account Hacker

Konanykhin and other executives have not settled. Instead, they have rejected the SEC’s request to attend a settlement meeting. In a letter to investors, Konanykhin said the SEC’s actions caused multi-billion-dollar losses to the company.

The SEC is pursuing civil penalties, the recovery of investor funds, and officer bans in its case against Unicoin. According to the agency, Unicoin’s promotions created a misleading image of stability and growth. This case continues amid broader crypto enforcement, even as the U.S. shifts toward looser digital asset regulation.

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