Key takeaways
- The U.S. Securities and Exchange Commission (SEC) has accused crypto platform Unicoin and its executives of orchestrating a $100 million fraud, deceiving over 5,000 investors with false promises
- Unicoin had claimed its tokens were backed by $1.4 billion in real estate and equity in pre-initial public offering (IPO) companies, but actual assets amounted to only about $300 million
- While the company claimed $3 billion in rights certificate sales, the SEC says it raised no more than $110 million
- The company falsely advertised its offerings as “SEC-registered” despite having no such registration
- Unicoin utilized extensive advertising, promoting their offerings as safe and profitable
- The SEC has charged CEO Alex Konanykhin, board member Silvina Moschini, and former CIO Alex Dominguez, seeking financial penalties and bans from executive roles in public companies.
- This case underscores the SEC’s continued and intensified efforts to regulate the crypto sector and crack down on alleged fraudulent offerings
The U.S. Securities and Exchange Commission (SEC) has taken legal action against crypto investment platform Unicoin and three of its top executives. In a lawsuit filed on May 20 in Manhattan federal court, the SEC accuses the company of masterminding a $100 million fraud scheme that deliberately misled more than 5,000 investors through deceptive promises and relentless marketing tactics.
How Unicoin Executives Defrauded Investors
Unicoin CEO Alex Konanykhin, board member Silvina Moschini, and former Chief Investment Officer Alex Dominguez face allegations of promoting fraudulent “rights certificates.” These certificates promised future Unicoin tokens and company equity, supposedly backed by billions of dollars in real estate and pre-IPO shares. The SEC says those claims were largely fabricated.
“Unicoin and its executives exploited thousands of investors with fictitious promises,” said Mark Cave, Associate Director of Enforcement at the SEC. “The real estate assets were worth a mere fraction of what the company claimed.”
Key Accusations Made by the SEC
According to the SEC’s complaint, Unicoin exaggerated nearly every key aspect of its offering:
- Asset Backing: The company claimed its tokens were secured by over $1.4 billion in property deals. In reality, most transactions never closed, and the actual value hovered around $300 million.
- Sales Volume: Unicoin boasted about $3 billion in rights certificate sales. SEC investigators found that the company only brought in $110 million.
- Regulatory Status: Unicoin advertised its offerings as “SEC-registered,” falsely implying the regulator had approved the investment products.
- Financial Strength: The firm reportedly told investors it could operate for decades. In truth, it sometimes had just four months of financial runway.
The complaint also details how Unicoin relied on flashy, large-scale promotions to lure investors. Advertisements appeared in major airports, taxis, on television, and across social media. Some materials promised very high returns, branding the offer as a safe and revolutionary crypto investment.
In a related case, Unicoin’s general counsel, Richard Devlin, faced charges for making misleading statements in the company’s offering materials. Although he did not admit guilt, Devlin agreed to pay a $37,500 penalty and accepted a permanent injunction.
SEC Seeks Penalties and Bans for Unicoin Executives
The SEC began scrutinizing Unicoin last year, issuing a Wells notice in December 2024. Subsequently, the company was given until April 18, 2025, to settle the matter. However, Unicoin declined the offer, with CEO Alex Konanykhin describing the SEC’s demands as “unacceptable” and attributing “multi-billion-dollar damages” to the investigation.
The SEC now seeks permanent injunctions, civil penalties, and the return of any ill-gotten gains. It also wants to bar Konanykhin, Moschini, and Dominguez from serving as officers or directors at any public company in the future.
This lawsuit marks another significant move in the SEC’s ongoing crackdown on fraudulent crypto ventures, as regulators aim to bring more transparency and accountability to the digital asset space.
Read more: U.S. SEC Chair Plans to Clarify Crypto Token Rules
