The US Securities and Stock Exchange Commission (SEC) accused the crypto currency company and three senior executives of Unicoin of being involved in a large securities plan of exceeding $ 100 million. The SEC described this initiative as a systematic financial manipulation full of deliberate deception against investors.

Alex Konanykhin, the founding partner and CEO of the company, said that Marketing Director Silvina Moschini and other executives make misleading promises to investors by exaggerating Unicoin’s investment potential. According to SEC’s allegations, Unicoin launched its tokens as “real estate -supported, but a large part of the real estate investments worth $ 1.4 billion announced to the public were not actually purchased and the value of these investments was seriously exaggerated.

Moreover, the advertising campaigns offered by Unicoin to attract investors were based on an aggressive marketing strategy from taxi ads to digital panels. In these campaigns, Unicoin investors are promised to return to 90,000 percent. However, the SEC said that these returns are dreaming and that the company never has a financial structure to provide these gains.

SEC also stated that there is a lack of transparency in the financial statements and investment reports of the company, and most of the information provided to investors were either unjust or deliberately distorted. For example, the company’s statements to the public, “important real estate agreements have been completed,” while the case file, most of these transactions are either canceled or never occurred.

Unicoin CEO Konanykhin rejected the allegations, refused to cooperate with the SEC and described all the charges as “unfounded”. As a matter of fact, in December 2024, the company received a Wells notification, which showed that the SEC plans to launch transactions against the company before the official case.

This case is seen as a reflection of SEC’s efforts to strengthen regulatory authority in the crypto currency market, not only in the Unicoin. SEC President Gary Gensler emphasized that investor protection should be increased many times and that many Token was actually unregistered securities. In this context, the Unicoin case is considered an event that can be a precedent.

The result of the case can not only determine the future of the company, but also how to shape regulations in the crypto market. The SEC clearly stated that it could take more measures to protect investors and that similar structures will be under the spotlight.