Yeliz Akmaca 
The SEC has filed a lawsuit against the cryptocurrency company Unicoin and its executives, alleging securities fraud exceeding $100 million. The lawsuit is based on claims that the company raised substantial funds by making misleading statements to investors.
What is Unicoin and Why is it Targeted?
Unicoin claimed to investors that its tokens were backed by an international portfolio of valuable real estate and raised funds with these promises. The company showcased real estate worth $1.4 billion in countries such as Argentina, Thailand, Antigua, and the Bahamas. However, the SEC alleges that Unicoin never purchased most of these properties and overstated their value. According to the SEC, the total value of the properties did not even reach $300 million, and most transactions were never completed. Additionally, while the company claimed its tokens were “asset-backed,” it did not grant investors any rights over these assets.
Mark Cave, Deputy Director of the SEC’s Enforcement Division, stated:
“We allege that Unicoin and its executives exploited thousands of investors with false promises that their tokens would be backed by real-world assets, including an international portfolio of valuable real estate. However, as we allege, the real estate assets were worth only a fraction of what the company claimed.”
Furthermore, the SEC claims that Unicoin sold 37.9 million unregistered rights certificates, marketed with the expectation that they would be converted into tokens, misleading investors.
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CEO Alex Konanykhin, announced that he rejected the SEC’s settlement offer. Konanykhin claims the company operated entirely legally and that the tokens are backed by real assets, including real estate in the Bahamas and Thailand, copper mining rights in Argentina, and investments in various ventures. The lawsuit also notes Unicoin’s claim of promising investors returns exceeding 9,000,000%, which has reportedly been removed from the company’s website.
The SEC states that Unicoin’s aggressive marketing campaigns in airports, New York taxis, social media, and TV advertisements attracted thousands of investors. Through these efforts, the company reportedly raised millions of dollars from over 5,000 investors. The SEC alleges in its lawsuit that Unicoin and its executives violated securities laws by making misleading statements to investors. Consequently, the lawsuit raises serious questions about the accuracy and transparency of the information Unicoin provided to investors.
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