The U.S. Securities and Exchange Commission (SEC) has filed charges against Unicoin and its executives for alleged fraud and violations of securities laws.
SEC Allegations
The SEC claims that Unicoin and its executives misled thousands of investors with false promises that their tokens would be backed by real-world assets, including an international real estate portfolio. According to the SEC, the company raised around $100 million from investors while making inflated claims about the value of its assets.
Unicoin's Actions
The SEC alleges that the executives of Unicoin, including the CEO, former board chair, senior vice president, and others, violated securities laws. Specifically, it was stated that over 5,000 investors purchased tokens, but the value of the company's assets was overstated and did not reflect reality.
Reactions and Consequences
Unicoin CEO Alex Konanykhin expressed confidence that the company would win this case, asserting that Unicoin is the most compliant crypto company in the U.S. However, the new allegations have shaken the crypto community amid a shifting regulatory landscape in the country.
The SEC's charges against Unicoin highlight the importance of legal compliance in the cryptocurrency sector and indicate that regulators continue to closely monitor this industry.
