The U.S. Securities and Exchange Commission (SEC) accused cryptocurrency startup Unicoin and its top executives of orchestrating a massive fraud scheme.

The SEC alleges that they raised more than $100 million from thousands of investors using false promises about asset-backed tokens and inflated fundraising numbers.

A crypto dream built on illusions?

The SEC’s 77-page complaint, filed May 20 in the Southern District of New York, centers on a scheme allegedly masterminded by CEO Alex Konanykhin and senior executives Silvina Moschini and Alex Dominguez.

The SEC claims Unicoin misled over 5,000 investors by marketing “rights certificates” as safe, asset-backed investments, promising that the underlying tokens were secured by billions of dollars in real estate and equity assets. In reality, the assets backing these promises were valued at just a fraction of what Unicoin advertised.

“We allege that Unicoin and its executives exploited thousands of investors with fictitious promises,” said Mark Cave, Associate Director at SEC Enforcement. “The majority of the company’s sales of rights certificates were illusory.”

From billion-dollar claims to fractional realities

The SEC’s investigation revealed stark discrepancies between Unicoin’s claims and reality. Despite boasting $3 billion in sales, the SEC says Unicoin raised no more than $110 million. Moreover, the tokens, portrayed as fully SEC-registered, were never formally registered, compounding accusations of misleading retail investors.

CEO Alex Konanykhin personally sold nearly 38 million rights certificates, targeting investors otherwise barred by company rules. The SEC alleges that these actions directly violated federal securities laws.

Unicoin’s aggressive marketing tactics are now under intense scrutiny. The company ran splashy advertisements on thousands of New York City taxis, airport screens, televisions, and social media platforms, promoting its tokens as secure investments tied to substantial real-world assets.

The SEC cites these widespread marketing campaigns as evidence of deceptive intent. Unicoin launched alongside a Shark Tank-style TV show, Unicorn Hunters, featuring Apple co-founder Steve Wozniak and political advisor Moe Vela, who spoke to CryptoSlate at the time.

Konanykhin responded defiantly, arguing the SEC’s intervention derailed the company’s growth trajectory. “We would likely be a $10B+ publicly traded company by now if the SEC had not blocked our ICO,” he told Decrypt, describing the charges as a politically motivated move orchestrated by “rogue officials” left over from former SEC Chair Gary Gensler’s administration.

Regulatory pressure in a shifting SEC environment

This case emerges as a pivotal test of the SEC’s enforcement appetite under Chair Paul Atkins, widely viewed as adopting a softer stance on cryptocurrency. However, the Unicoin charges suggest that significant retail fraud, particularly involving exaggerated asset claims, remains squarely within the regulator’s sights.

Notably, Unicoin’s general counsel, Richard Devlin, has reportedly already settled with the SEC, agreeing to a permanent injunction and paying a $37,500 penalty. This settlement hints at possible fractures within Unicoin’s defense strategy as the legal battle unfolds.

The SEC seeks to permanently bar Konanykhin, Moschini, and Dominguez from holding officer or director positions, alongside financial penalties and disgorgement of gains. The extent of investor losses remains unclear, and the early stages of litigation could see Unicoin attempt to countersue or request venue changes.

The outcome of this case raises questions over the future regulatory treatment of asset-backed tokens and influences ongoing congressional discussions about potential crypto carve-outs.

Chronology of Events

• Dec 2024: SEC issues Wells notice to Unicoin.
• Apr 18, 2025: Settlement meeting scheduled; company no-shows.
• Apr 22, 2025: CEO Konanykhin publicly rejects settlement offer.
• May 20, 2025: SEC formally files complaint.

With billions at stake and reputations on the line, Unicoin’s unfolding legal drama will reveal how far regulators will go to reduce crypto regulation, whether flashy marketing is now viable again, whether crypto is back in the ‘wild west’, and whether the SEC will make an example of Unicoin.

CryptoSlate has reached out to several members of the Unicoin team but received no response as of press time.

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