Earlier this week, the SEC sent a Wells Notice to Unicoin, a U.S. crypto investment firm, indicating plans to file a lawsuit against the company.
Wells Notice to Unicoin
The controversial head of the Securities and Exchange Commission, Gary Gensler, will leave his post in a month but remains vigilant towards crypto. The SEC's notice states plans to charge Unicoin with fraud, misleading practices, and sales of unregistered securities.
Unicoin's Response to Allegations
In May, the SEC’s crypto team sent subpoenas to Unicoin. CEO Alex Konanykhin explained the subpoenas are related to Unicoin's main product, a cryptocurrency backed by real assets, including billions of dollars in real estate. Lawyers for Unicoin are preparing a response due December 24. Konanykhin echoed a common sentiment in the crypto community, calling the actions politically motivated: 'I can only say one word: bullshit, complete and utter bullshit.'
Details of the Case Against Unicoin
It is noted that Wells Notice contains fraud charges against Unicoin not seen in recent cases against major crypto companies like Coinbase. According to Konanykhin, the SEC is blocking Unicoin because it doesn’t want it to have an ICO. A spokesperson claimed the commission 'does not comment on the existence or nonexistence of a possible investigation.'
The case against Unicoin is a significant event for the crypto industry, highlighting the SEC's tough stance on cryptocurrency regulation. This development is expected to be closely watched by market participants and could impact future regulatory actions in the sector.
