SEC Accuses Unicoin Executives of $100 Million Cryptocurrency Fraud in Alleged Asset-Backed Token Scheme

The U.S. Securities and Exchange Commission has charged the cryptocurrency firm Unicoin and its executives with engaging in an extensive fraudulent operation.

The SEC claims that Unicoin secured over $100 million from numerous investors by making misleading assertions regarding asset-backed tokens and exaggerating fundraising figures.

A cryptocurrency illusion?

The detailed complaint, spanning 77 pages and submitted on May 20 in the Southern District of New York, highlights a scheme purportedly led by CEO Alex Konanykhin along with senior team members Silvina Moschini and Alex Dominguez.

The regulatory body asserts that Unicoin deceived more than 5,000 investors by promoting “rights certificates” as trustworthy investments backed by tangible assets, alleging that the tokens were secured by billions in real estate and equity. However, the actual value of these assets was only a small fraction of what was advertised.

“We contend that Unicoin and its leaders took advantage of many investors with false assurances,” stated Mark Cave, an Associate Director at SEC Enforcement. “Most of the sales of rights certificates were illusory.”

From grand claims to a fraction of the truth

The SEC probe revealed significant inconsistencies between Unicoin’s assertions and the truth. While the firm claimed to have generated $3 billion in sales, the investigation found that it actually raised only around $110 million. Additionally, the tokens, which were claimed to be SEC-registered, had never undergone formal registration, exacerbating the charges of misleading retail investors.

CEO Alex Konanykhin reportedly sold nearly 38 million rights certificates, reaching out to investors who were otherwise prohibited by company policies. The SEC alleges this activity was in direct violation of federal securities regulations.

Unicoin’s highly aggressive marketing strategies are now facing scrutiny. The company promoted its tokens extensively through eye-catching advertisements displayed on thousands of taxis, airport screens, televisions, and digital platforms, presenting them as secure investments linked to substantial real assets.

The SEC cites these extensive marketing efforts as evidence of deceptive practices. Unicoin was launched in conjunction with a television show, Unicorn Hunters, which featured prominent figures like Apple co-founder Steve Wozniak and political advisor Moe Vela.

In response, Konanykhin asserted that the SEC’s involvement has hindered the company’s opportunity for growth. “We could have been a $10B+ publicly traded firm by now if the SEC hadn’t halted our ICO,” he claimed, describing the allegations as politically charged actions by “rogue officials” from the previous SEC administration.

Regulatory challenges in a changing SEC landscape

This situation poses a crucial challenge to the SEC’s enforcement approach under Chair Paul Atkins, who is perceived to favor a more lenient view on cryptocurrency. Nonetheless, the charges against Unicoin indicate that serious retail fraud, especially involving inflated asset declarations, remains a focal point for the regulator.

Interestingly, Unicoin’s general counsel, Richard Devlin, has reportedly reached a settlement with the SEC, which includes a permanent injunction and a $37,500 penalty. This development suggests potential discord within Unicoin’s defense strategy as the litigation progresses.

The SEC aims to permanently prohibit Konanykhin, Moschini, and Dominguez from assuming officer or director roles, accompanied by financial penalties and the return of earnings. The total losses suffered by investors remain uncertain, and the initial phases of the case could see Unicoin considering countersuits or venue alterations.

The resolution of this case could impact future regulatory approaches to asset-backed tokens and might influence ongoing congressional discussions regarding potential exemptions for cryptocurrency.

Timeline of Events

• Dec 2024: SEC delivers Wells notice to Unicoin.
• Apr 18, 2025: Settlement meeting arranged; company fails to attend.
• Apr 22, 2025: CEO Konanykhin publicly declines settlement proposal.
• May 20, 2025: SEC officially files the complaint.

With billions involved and reputations at stake, the ongoing legal saga surrounding Unicoin is poised to clarify regulators’ commitment to decreasing cryptocurrency oversight, the viability of aggressive marketing, and whether the crypto industry is reverting to a ‘wild west’ scenario, alongside the likelihood of the SEC making an example out of Unicoin.

Inquiries have been made to various members of Unicoin’s team, but responses have not yet been received as of this time.