SEC sues Unicoin over alleged $100 million fraud
Unicoin allegedly promised its tokens were backed by billions in property, though assets were worth far less.
The US SEC has charged Unicoin and three executives for allegedly raising over $100 million through misleading investor claims. The SEC claims Unicoin falsely promised investors its crypto assets were backed by a multibillion-dollar global property portfolio.
Unicoin CEO Alex Konanykhin, board member Silvina Moschini, and former investment head Alex Dominguez are accused of exaggerating the company’s sales and falsely stating its tokens and certificates were SEC-registered.
The SEC said the real estate backing was worth far less than claimed and that most of the company’s sales were ‘illusory.’
The SEC said Unicoin falsely claimed decades of reserves while operating with less than a year of funding. Unicoin allegedly reported over $3 billion in certificate sales, though only $110 million was raised.
General counsel Richard Devlin was also charged but settled for a $37,500 penalty without admitting guilt. Unicoin and the named executives have yet to issue public statements, though Konanykhin previously said the company would fight the case in court.
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