SEC Charges Unicoin and Executives in $100 Million Crypto Fraud Scheme

The U.S. Securities and Exchange Commission (SEC) has charged New York-based Unicoin Inc. and its executives with orchestrating a $100 million fraud involving deceptive promises tied to a crypto-asset and stock certificate offering.

The SEC alleges that the company, along with executives Alex Konanykhin, Silvina Moschini, and Alex Dominguez, misled over 5,000 investors through false claims about the value of assets backing their tokens, raising significant concerns about transparency in the crypto industry.

Allegations of Deceptive Practices

The SEC’s complaint, filed on Tuesday, accuses Unicoin of making fictitious claims that its tokens would be supported by a robust portfolio of international real estate holdings. Mark Cave, associate director in the SEC’s Division of Enforcement, stated that the company grossly overstated the value of these assets, which were worth “a mere fraction” of what it represented to investors.

The misleading statements were part of a broader campaign that included high-visibility promotions, such as advertisements displayed in major airports and on thousands of New York City taxis, which helped convince investors to purchase the certificates.

Did You Know?
The SEC has intensified its scrutiny of crypto offerings since 2021, filing over 100 enforcement actions related to digital assets, with fraud cases accounting for nearly 40% of these efforts.

Regulatory Context Under New Leadership

The charges come at a time when the SEC, under newly appointed Chair Paul Atkins, is navigating a complex regulatory landscape for digital assets. Following the inauguration of pro-crypto President Donald Trump, the agency has dropped several high-profile enforcement actions, including cases against major crypto exchanges like Coinbase Global Inc., which saw its stock price rise 0.99% to $261.38 on Tuesday, and Binance Holdings Ltd.

Atkins has emphasized a “rational, coherent, and principled approach” to crypto regulation, aiming to provide a clearer framework for the industry. However, the SEC continues to pursue cases of alleged fraud, as evidenced by this action and a recent April charge against Praetorian Group International Corp. for a $198 million Ponzi and pyramid scheme.

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Broader Implications for Crypto Investors

The Unicoin case underscores ongoing challenges in the cryptocurrency market, where promises of high returns and asset-backed tokens can obscure significant risks. Real-time data indicates growing public concern over crypto scams, with recent discussions suggesting that there must be stronger investor protections.

The SEC’s action signals that, despite a shift toward more crypto-friendly policies, the agency remains vigilant in addressing fraudulent schemes that exploit investor trust.