SEC Files Fraud Charges Against Unicoin and Executives for $100 Million Scheme
The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Unicoin and three of its executives for fraud, claiming the company raised over $100 million through unsupported token sales.
Key points from the SEC's allegations include:
- Unicoin falsely claimed to own real estate properties that were never acquired.
- The supposed value of these properties was inflated; transactions totaling over $1.4 billion had not closed, with actual values around $300 million.
- Unicoin overstated its sales figures, claiming $3 billion in rights certificate sales while actual sales were below $110 million.
- The company advertised outsized returns of up to 9 million percent across various media platforms.
Unicoin received a Wells notice from the SEC last December, indicating potential securities fraud charges. CEO Alexander Konanykhin rejected a settlement offer from the SEC, citing unacceptable pre-meeting demands.
The SEC seeks disgorgement and civil penalties as part of the enforcement action.