Investors Betrayed as SEC Accuses Unicoin of $100M Crypto Fraud

The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against cryptocurrency company Unicoin and four of its top executives, alleging a fraudulent scheme that defrauded over 5,000 investors of more than $100 million. The suit, unsealed in May 2025, accuses Unicoin of making false claims regarding the backing of its tokens by real estate assets and of inflating its financial figures to mislead investors. Among those named are CEO Alex Konanykhin and other senior leaders, who face charges of misleading marketing and improper sales practices tied to the Unicoin Rights Certificates [2].

Unicoin has announced its intent to file a motion to dismiss the SEC’s case, with CEO Alex Konanykhin characterizing the allegations as politically motivated “fabrications.” Konanykhin, in an interview with Decrypt, claimed the SEC’s actions were part of former Chair Gary Gensler’s broader “anti-crypto crusade,” aimed at preventing Unicoin’s NYSE listing. He further asserted that the agency’s investigation found no violations and that the charges were “crudely fabricated” to undermine the company’s public market ambitions [3].

The SEC’s complaint highlights several key allegations, including the overstatement of real estate acquisitions in multiple jurisdictions such as Argentina, Antigua, Thailand, and the Bahamas. The regulator claims Unicoin misrepresented the value and ownership status of properties it claimed to be backing its tokens, some of which had not even closed on title. Unicoin, however, has pushed back on these claims, arguing that its disclosures were transparent and that the SEC conflated the value of its token offerings with the valuation of real estate contracts [3].

BrokerChooser, a financial service that evaluates the trustworthiness of trading platforms, has also weighed in, cautioning investors against using Unicoin. The platform has labeled the company as unsafe due to its lack of regulation by a top-tier financial authority. According to Adam Nasli, a senior analyst at BrokerChooser, the absence of oversight by bodies like the SEC or FCA significantly increases the risk of hidden fees, unfair trading practices, and potential fraud [1].

Legal experts have weighed in on the SEC’s case, suggesting that the lawsuit could pose a significant legal challenge for Unicoin. Katherine Reilly, a former federal prosecutor, noted that the SEC’s allegations align more closely with a traditional securities fraud case than the more recent, high-profile crypto-related lawsuits that have been dismissed or withdrawn. Reilly warned that the company’s attempt to align itself with the pro-crypto stance of the Trump administration might not sway a judge in the Southern District of New York [3].

The ongoing legal battle comes amid broader concerns within the crypto industry over “debanking,” the practice of financial institutions cutting ties with crypto businesses and individuals. Even major firms like Unicoin have reportedly seen their bank accounts shut down, making it difficult to move money in and out of crypto platforms. While the Trump administration has signaled a push to curb such practices, the outcome will likely depend on how forthcoming regulatory frameworks are written and enforced [4].

Investors remain caught in the middle, with many expressing frustration over the difficulty of recovering funds from platforms they now consider high-risk. As the legal proceedings unfold, the SEC seeks penalties, leadership bans, and civil enforcement, while Unicoin’s leadership remains defiant, claiming the company has been a victim of an unfair regulatory campaign. The case is being closely watched by both the crypto industry and the financial regulatory sector, as it may set a precedent for how similar enforcement actions are handled in the future [2].

Source:

[1] Is Unicoin safe or a scam? (https://brokerchooser.com/safety/unicoin-broker-safe-or-scam)

[2] SEC Hits Unicoin, Top Leaders with Lawsuit Alleging $100M+ Crypto Fraud (https://cryptorank.io/news/feed/c1f22-sec-unicoin-lawsuit-crypto-fraud-konanykhin)

[3] Unicoin Will Move to Dismiss SEC Fraud Case, Says CEO (https://decrypt.co/337050/unicoin-will-move-to-dismiss-sec-fraud-case-says-ceo)

[4] Debanking Isn't Over Yet in Crypto: What Investors Need To Know (https://finance.yahoo.com/news/debanking-isn-t-over-yet-141508683.html)