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The U.S. Securities and Exchange Commission (SEC) has filed a massive lawsuit against Unicoin Inc. and three senior executives, claiming that they organized a $100 million fraud that deceived thousands of retail investors with misleading claims and marketing practices. The lawsuit was filed in Manhattan federal court on May 20, 2025, and is one of many recent legal actions that are rocking the cryptocurrency industry.
The SEC’s complaint stated that Unicoin marketed and sold what they called “rights certificates” that allowed investors early access to Unicoin tokens as well as equity in the company. They claimed that the certificates were backed by real-word assets, including an international portfolio of valuable real estate and private equity interests.
But regulators say those claims were far from the truth. The assets Unicoin advertised were allegedly grossly overstated, and the promised registration with the SEC was never completed. The company, which claimed to have raised $3 billion, had in fact brought in only about $110 million from over 5,000 investors.
“The majority of the company’s sales of rights certificates were illusory,” said Mark Cave, Associate Director of Enforcement at the SEC. “Unicoin and its executives exploited thousands of investors with fictitious promises.”
The lawsuit names several high-profile individuals in Unicoin’s leadership:
Alex Konanykhin, CEO and Board Chairman
Silvina Moschini, Board Member
Alex Dominguez, Former Chief Investment Officer
Richard Devlin, General Counsel (who has already settled charges)
Konanykhin allegedly sold nearly 38 million rights certificates, deliberately targeting investors that previous legal counsel had advised avoiding, potentially to exploit legal loopholes. The SEC believes this was a straightforward violation of federal securities laws.
Devlin, Unicoin’s general counsel, has agreed to settle his charges without admitting any guilt and will pay a $37,500 penalty, which suggests there may be an internal separation from this case as it unfolds.
Unicoin poured a significant amount of money into promoting its project as a safe and potentially profitable cryptocurrency investment with everything from taxis in New York City, airport screens, national television, to social media. The company even associated itself with high-profile venture show "Unicorn Hunters," featuring public figures like Steve Wozniak.
The SEC claims Unicoin investors were told again and again the Unicoin tokens were registered with the SEC and backed with billions of actual physical assets. It claims it was meant to create false security and inflate the company's apparent legitimacy.
December 2024: SEC issues a Wells notice to Unicoin.
April 18, 2025: Unicoin misses a scheduled settlement meeting.
April 22, 2025: CEO Konanykhin publicly rejects the settlement.
May 20, 2025: SEC files formal charges in federal court.
In response to the lawsuit, Konanykhin claimed that the SEC’s actions are politically driven and have stifled Unicoin’s potential. “We would likely be a $ 10 billion+ publicly traded company by now if the SEC had not blocked our ICO,” he told media outlet Decrypt.
The Unicoin case is one of the first landmark cases for the SEC under new chair Paul Atkins, who could be described as more pro-crypto. Still, the charges suggest that the agency will not hesitate to act when retail investor protection is at stake, especially when companies exaggerate asset backing or mislead the public.
The case also highlights the wider issue of asset-backed tokens, which many companies are now marketing as stable and trustworthy investment products. Unicoin's case could have an impact on forthcoming debates in Congress regarding how to structure and regulate these products.
Unicoin's legal troubles happen alongside a rash of other highly publicized crypto lawsuits:
Bancor versus Uniswap: Bancor, a DeFi pioneer, has accused Uniswap of infringing on its patented automated market maker (AMM) technology. Bancor claims its 2016 innovation was unlawfully adopted by Uniswap, which has since grown into one of the most dominant platforms in decentralized finance.
Genesis vs. DCG: Bankrupt lender Genesis has filed two lawsuits against parent company Digital Currency Group (DCG) and its CEO, Barry Silbert, alleging they siphoned over $1 billion through fraudulent loans and sham transactions. Genesis creditors are seeking to recover $3.3 billion in assets.
The conclusion of the SEC's action against Unicoin is another piece of the puzzle in the rapidly evolving, currently under investigation crypto ecosystem. The SEC cited millions in investor money at stake, and new laws still under development may also create important precedents.
Whether this signals a stricter approach from regulators or if this is simply the first of many similar actions. However, what remains certain is that the era of unregulated crypto hype and overstated marketing is likely coming to a head in court and the consequences may change the dynamic of digital finance.
Also Read: Bitcoin Price: How is it Regulating Other Crypto Prices?
