SEC Files $100 Million Fraud Complaint Against Unicoin Executives

The U.S. Securities and Exchange Commission (SEC) has filed a $100 million complaint against Unicoin, a cryptocurrency startup, and its top executives for allegedly orchestrating a massive fraud scheme. The SEC alleges that Unicoin and its executives, including CEO Alex Konanykhin, senior executives Silvina Moschini, and Alex Dominguez, raised over $100 million from thousands of investors by making false promises about asset-backed tokens and inflating fundraising numbers.

The SEC’s 77-page complaint, filed in the Southern District of New York, details how Unicoin misled over 5,000 investors by marketing “rights certificates” as safe, asset-backed investments. The company claimed that the underlying tokens were secured by billions of dollars in real estate and equity assets. However, the SEC’s investigation revealed that the actual value of these assets was only a fraction of what Unicoin advertised.

Mark Cave, Associate Director at SEC Enforcement, stated, “We allege that Unicoin and its executives exploited thousands of investors with fictitious promises. The majority of the company’s sales of rights certificates were illusory.” The SEC’s investigation uncovered significant discrepancies between Unicoin’s claims and reality. Despite boasting $3 billion in sales, the SEC says Unicoin raised no more than $110 million. Additionally, the tokens, which were portrayed as fully SEC-registered, were never formally registered, further compounding the accusations of misleading retail investors.

CEO Alex Konanykhin personally sold nearly 38 million rights certificates, targeting investors who were otherwise barred by company rules. The SEC alleges that these actions directly violated federal securities laws. Unicoin’s aggressive marketing tactics, which included splashy advertisements on thousands of New York City taxis, airport screens, televisions, and social media platforms, are now under intense scrutiny. The company also launched alongside a Shark Tank-style TV show, Unicorn Hunters, featuring notable figures such as Apple co-founder Steve Wozniak and political advisor Moe Vela.

Konanykhin responded defiantly to the SEC’s intervention, arguing that the regulator’s actions derailed the company’s growth trajectory. “We would likely be a $10B+ publicly traded company by now if the SEC had not blocked our ICO,” he stated, describing the charges as a politically motivated move orchestrated by “rogue officials” left over from former SEC Chair Gary Gensler’s administration.

This case emerges as a pivotal test of the SEC’s enforcement appetite under Chair Paul Atkins, who is widely viewed as adopting a softer stance on cryptocurrency. However, the Unicoin charges suggest that significant retail fraud, particularly involving exaggerated asset claims, remains squarely within the regulator’s sights. Notably, Unicoin’s general counsel, Richard Devlin, has reportedly already settled with the SEC, agreeing to a permanent injunction and paying a $37,500 penalty. This settlement hints at possible fractures within Unicoin’s defense strategy as the legal battle unfolds.

The SEC seeks to permanently bar Konanykhin, Moschini, and Dominguez from holding officer or director positions, alongside financial penalties and disgorgement of gains. The extent of investor losses remains unclear, and the early stages of litigation could see Unicoin attempt to countersue or request venue changes. The outcome of this case raises questions over the future regulatory treatment of asset-backed tokens and influences ongoing congressional discussions about potential crypto carve-outs.

With billions at stake and reputations on the line, Unicoin’s unfolding legal drama will reveal how far regulators will go to reduce crypto regulation, whether flashy marketing is now viable again, whether crypto is back in the ‘wild west’, and whether the SEC will make an example of Unicoin. The chronology of events includes the SEC issuing a Wells notice to Unicoin in December 2024, a scheduled settlement meeting in April 2025 that Unicoin did not attend, CEO Konanykhin publicly rejecting a settlement offer on April 22, 2025, and the SEC formally filing the complaint on May 20, 2025.