The U.S. Securities and Exchange Commission has filed a lawsuit against cryptocurrency firm Unicoin, accusing it of orchestrating a $100 million investment fraud. The case also targets four senior executives, including CEO Alexander Konanykhin, for allegedly misleading investors through false claims about real estate-backed tokens.
In the SEC’s complaint, Unicoin falsely claimed its cryptocurrency investment was backed by real estate worldwide. According to the company, after buying properties in Argentina, Thailand, Antigua, and the Bahamas, it owns assets valued at over $1.4 billion. This information was at the heart of how they marketed their token.
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On the other hand, the SEC found that most of these possible acquisitions never took place, with completed property transactions totaling less than $300 million. The regulators say the firm made false claims about its real estate investments to support its token launches and increase their value.
Apart from the false property claims, the SEC pointed out that Unicoin greatly misrepresented how much money it had raised. The public was told that the company brought in $3 billion by selling rights certificates, but the agency said the actual amount raised was less than $110 million.
Executives Named in Fraud and Marketing Allegations
The lawsuit holds CEO Alexander Konanykhin, former board chair Maria Moschini, general counsel Richard Devlin, and ex-chief investment officer Alejandro Dominguez directly responsible for orchestrating and promoting the fraudulent scheme. These individuals are accused of violating federal securities laws by targeting unqualified investors and illegally selling investment products.
Unicorn’s marketing efforts were also flagged for their aggressive and misleading nature. Promotional materials promised returns as high as nine million percent. The alleged deception grew when these messages were placed on taxis, digital screens, ferries, elevators, and various public spots.
In a post on X, Eleanor Terrett reported that the SEC is seeking permanent injunctions, civil penalties, and leadership bans against the executives named in the case. In response to the charges, Konanykhin denied his actions were illegal and claimed Unicoin was always within the law.
The SEC’s complaints against Unicoin underline rising worries that crypto investors are being misled. As trials for misleading investments in digital assets unfold, the case could demonstrate how regulators respond.
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