Nikolas Sargeant
The U.S. Securities and Exchange Commission (SEC) announced on May 21, 2025, that it has charged cryptocurrency company Unicoin and three of its executives—including CEO Alex Konanykhin—with defrauding investors of over $100 million. The SEC alleges that Unicoin misrepresented its financial situation, falsely claiming to have sold more than $3 billion in rights certificates when only $110 million were sold. Additionally, the company purported that its tokens were backed by valuable real estate assets, a claim the SEC contends was exaggerated.
The SEC's complaint, filed in a Manhattan federal court, accuses Unicoin and its executives of violating federal securities laws by making false and misleading statements to investors. The agency seeks permanent injunctive relief and the return of allegedly ill-gotten gains. Unicoin's general counsel, Richard Devlin, has agreed to a $37,500 civil penalty without admitting or denying the charges.
In response to the charges, CEO Alex Konanykhin has rejected the SEC's attempt to settle the case and plans to contest the allegations in court. He claims that the SEC's actions have caused significant financial harm to the company and its investors. Unicoin, which markets itself as "America's first crypto company," has faced scrutiny over its delayed launch and the authenticity of its asset-backed claims.
SEC Under Trump
President Trump campaigned on being friendly to the cryptocurrency industry, and many of his appointees have confirmed this trend. Additionally, the SEC has dropped many cases and investigations into major cryptocurrency players.
Nonetheless, it has not been a bed of roses. The SC recently opened an investigation into Coinbase, and is delaying its decisions on XRP and Dogecoin ETFs. The SEC's action against Unicoin is part of its broader efforts to regulate the cryptocurrency industry and protect investors from deceptive practices. The outcome of this case could have significant implications for the future of crypto regulation and investor confidence in digital asset markets.
