SEC sues crypto platform Unicoin over alleged fraud
The US Securities and Exchange Commission (SEC) has filed a lawsuit against the crypto company Unicoin and three of its top executives, CEO Alex Konanykhin, board member Silvina Moschini and former investment head Alex Dominguez. The SEC accuses them of misleading more than 5,000 investors, which resulted in raising more than $100 million.
Unicoin claimed its tokens were backed by billions of dollars in real estate holdings worldwide. In reality, these assets were worth only a fraction of what was claimed.
The company additionally sold certificates that entitled it to future Unicoin tokens and shares without the required registration with the SEC.
Unicoin claimed to have sold more than $3 billion in certificates, while the actual amount was only $110 million. In addition, it falsely claimed the tokens were SEC-registered.
The company claimed to have a financial cushion of decades, when in reality it sometimes had only four months of operating funds.
CEO Alex Konanykhin has strongly denied the allegations, accusing the SEC of politicising regulations. He has refused to settle and plans to challenge the matter in court. Konanykhin is also considering filing a counterclaim against the SEC for alleged damages of billions of dollars to the company and its investors.
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