SEC Charges Unicoin and Executives with $100 Million Crypto Fraud

The US Securities and Exchange Commission (SEC) has charged New York-based Unicoin Inc. and its executives with orchestrating a $100 million fraud. The regulator accused the company and executives Alex Konanykhin, Silvina Moschini, and Alex Dominguez of making false and misleading statements related to an offering of certificates promising rights to receive crypto-assets and stock, according to a statement released on Tuesday.

“We allege that Unicoin and its executives exploited thousands of investors with fictitious promises that its tokens, when issued, would be backed by real-world assets including an international portfolio of valuable real estate holdings,” said Mark Cave, associate director in the SEC’s Division of Enforcement. These real estate assets were, in reality, worth “a mere fraction” of what the company claimed, Cave added.

Under the administration of pro-crypto President Donald Trump, the SEC has dropped more than 10 high-profile crypto-enforcement cases, including lawsuits against exchanges Coinbase Global Inc. and Binance Holdings Ltd. However, the newly sworn-in SEC Chair Paul Atkins has stated that a top priority will be to provide a firm regulatory foundation for digital assets through a “rational, coherent and principled approach.” Despite this, the watchdog hasn’t entirely curtailed crypto actions. In April, it charged crypto and foreign exchange outfit Praetorian Group International Corp. with orchestrating a $198 million Ponzi and pyramid scheme.

In the Tuesday statement, the SEC alleged that Unicoin marketed certificates to the public through extensive promotional efforts, including advertisements in major airports and on thousands of New York City taxis. The group and its executives are accused of convincing more than 5,000 investors to purchase the certificates. Unicoin did not immediately respond to a request for comment.

This case highlights the ongoing challenges and risks associated with the rapidly evolving cryptocurrency market. Investors are urged to conduct thorough due diligence and remain cautious when considering investments in crypto-assets, especially those marketed with promises of high returns and valuable backing. The SEC’s actions against Unicoin and its executives serve as a reminder that regulatory scrutiny in the crypto space remains strong, and companies must adhere to strict compliance standards to avoid legal repercussions.

For more information on the SEC’s ongoing efforts to protect investors and regulate the crypto market, visit the official SEC website or consult with a financial advisor for personalized guidance. Investors are encouraged to stay informed and vigilant to protect their investments and financial well-being in the dynamic and sometimes unpredictable world of cryptocurrencies.