SECAccuses Unicoin Executives of $100M Cryptocurrency Fraud
Unicoin Faces SEC Fraud Charges for Deceptive Securities Offering
The U.S. Securities and Exchange Commission (SEC) has accused crypto firm Unicoin, Inc. of deceiving investors in a securities offering fraud worth over $100 million. The SEC alleges that Unicoin misled over 5,000 investors by selling "rights certificates" as asset-backed, SEC-registered investments in next-generation crypto tokens, despite the assets being worth only a fraction of what was claimed and the offerings being unregistered.
The SEC's complaint, filed in the U.S. District Court for the Southern District of New York, alleges that Unicoin conducted unregistered offerings and sold securities to ineligible investors. Mark Cave, Associate Director of the SEC's Division of Enforcement, stated that Unicoin allegedly exploited thousands of investors with fictitious promises.
Key false claims and regulatory violations include:
- False promotional claims: Unicoin advertised the rights certificates as asset-backed and SEC-registered when neither was true.
- Offering unregistered securities: The securities were sold without proper SEC registration, violating securities laws.
- Misleading investor information: Offering documents contained negligent misstatements made by the General Counsel who settled with the SEC; other executives denied wrongdoing but faced charges.
- Widespread fraudulent marketing: Fraudulent claims were disseminated broadly via investor meetings, ads (including in airports and NYC taxis), media, and crypto conferences to attract investors.
- Executive involvement: The individuals charged include CEO Alex Konanykhin, former president, former Chief Investment Officer, and General Counsel Richard Devlin. The SEC seeks injunctive relief, monetary penalties, and officer-and-director bars, notably against Konanykhin and other executives.
The SEC's accusation is based on Unicoin allegedly making false claims tied to certificates linked to future crypto asset payouts. The company misled investors through the promotion of certificates that were said to grant rights to receive Unicoin tokens. Cave added that most of the rights certificate sales were essentially fabricated.
This enforcement action, part of a broader “back to basics” approach focusing on traditional fraud within crypto contexts rather than crypto-specific regulatory issues, underscores the importance of adhering to securities laws in the crypto space. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project.
[1] U.S. Securities and Exchange Commission. (2025). Press Release. Retrieved from https://www.sec.gov/news/press-release/2025-109 [2] SEC Charges Unicoin, Inc. and Four Executives in $100 Million Securities Offering Fraud. (2025, May 1). Retrieved from https://www.sec.gov/news/press-release/2025-88 [3] SEC Enforcement Actions in Crypto Space. (2025). Retrieved from https://www.sec.gov/spotlight/cryptocurrencies-and-icos [4] SEC Charges Unicoin General Counsel with Aiding and Abetting Offering Fraud. (2025, July 1). Retrieved from https://www.sec.gov/news/press-release/2025-157 [5] SEC Charges Unicoin Co-Founder with Aiding and Abetting Offering Fraud. (2025, August 1). Retrieved from https://www.sec.gov/news/press-release/2025-185
- Amidst the SEC's ongoing investigation into cryptocurrency firms, Unicoin's alleged deception in selling technology-based tokens under false promises of magazine-backed financing for businesses may raise concerns about transparency in the business sector.
- Despite the SEC's crackdown on unregistered securities offerings, it appears that some crypto entities, such as Unicoin, are still using technology to mislead investors, highlighting the need for enhanced regulations and financial advice in the digital currency market.
