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- The SEC sued Unicoin and three top executives for misleading investors.
- Over $100 million was involved in false crypto-related offers.
- More than 5,000 investors were affected by the alleged fraud.
On May 20, 2025, the U.S. Securities and Exchange Commission (SEC) filed a major lawsuit against Unicoin, Inc., a New York-based company. The charges also targeted three senior executives. The agency accused them of misleading thousands of investors.
They supposedly sold stock and crypto-related certificates based on false representations. At the center of the case is Unicoin selling rights certificates. The company tied the certificates to an upcoming crypto coin known as Unicoin.
The firm guaranteed to back the tokens with valuable assets such as global property and equity in pre-IPO firms. The SEC claims, however, that such assets never actually existed in the quantities the firm represented.
The SEC said that Unicoin sold in excess of $100 million worth through the sales. It promoted the offers aggressively in advertisements in airports, taxis, on TV, and on social media. More than 5,000 investors invested, thinking the investment was safe and well-regulated.
Executives Accused of Misleading Promotions
The SEC has charged that the leadership in Unicoin made numerous false representations. One of the largest assertions was that the company had already raised $3 billion, yet the company actually raised just $110 million. They claimed to have registered the offerings with the SEC. They were not, however.
The members of the executive team at Unicoin include CEO and chairman Alex Konanykhin, board member Silvina Moschini, and ex-investment officer Alex Dominguez. Authorities accuse all of them of being involved in or permitting deceptive promotions.
The complaint identifies an effort on the part of Konanykhin to market millions of rights certificates directly to investors that would appear to be in violation of federal requirements. The complaint also included another individual, general counsel Richard Devlin.
Reports say he provided false information in files used to solicit the offers. Devlin has already signed an agreement to pay a penalty and accept permanent restrictions without admitting fault.
SEC Files Case in Southern District of New York
The SEC brought the suit in the Southern District of New York. The agency is calling for stringent penalties. They include barring the executives from serving in similar capacities at other companies. It also calls for the restitution of all the profits earned through the said misconduct.
The proposed measures include civil penalties and lifetime injunctions prohibiting future activities. Experts see the action as an indicator of increasing concerns about false investment opportunities in the cryptocurrency market.
The SEC maintains its investigation into companies marketing digital assets with inadequate oversight. The Unicoin case is likely to be an important reference point in the drive against fraud in new markets and in the interests of investors.
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