The SEC has taken legal action against the crypto company Unicoin and its top executives, accusing them of securities fraud. According to the SEC, Unicoin raised over $100 million through tokens that were falsely claimed to be backed by real estate assets. The regulator alleges that the company never actually owned the properties it promoted and that the values of those properties had been exaggerated.
Between September 2023 and January 2024, Unicoin announced acquisitions of properties in countries like Argentina, Thailand, Antigua, and the Bahamas, claiming appraised values exceeding $1.4 billion. However, most of these transactions never closed, and the actual combined value of these properties was no more than $300 million.
The SEC also alleges that Unicoin overstated its sales of rights certificates, misleading investors and the public into believing it had raised far more funds than it actually did. While the company claimed to have generated $3 billion in sales by mid-2024, the actual figure was less than $110 million.
Additionally, Unicoin promoted its rights certificates by promising extraordinary returns—up to 9 million percent—using advertisements on taxis, ferries, digital billboards, TV, websites, and Wi-Fi kiosks. The SEC pointed out that these marketing efforts emphasized Bitcoin’s past growth, encouraging early investment with messages like “take advantage of the early days of Unicoin” and highlighting how early Bitcoin adopters became millionaires and billionaires.
Unicoin had previously received a Wells notice from the SEC, warning of potential charges. Last month, CEO Alexander Konanykhin informed shareholders that the company had rejected the SEC’s attempt to settle the case, calling the proposed settlement demands unacceptable and claiming the SEC’s investigation had caused multi-billion-dollar damages.
Neither Konanykhin nor Unicoin’s spokesperson responded to requests for comment. In earlier statements, a company representative claimed Unicoin was fully compliant with U.S. regulations and was the only U.S.-regulated, audited, and publicly reporting crypto firm.
As the SEC pursues these allegations, it is seeking disgorgement of funds and civil penalties. This case highlights ongoing concerns around transparency and honesty in the crypto industry, especially regarding claims of backing assets and extraordinary investment returns.
