The United States Securities and Exchange Commission (SEC) has launched a lawsuit against Unicoin, a New York-based crypto company, accusing it of defrauding over 5,000 investors out of $110 million.
The SEC alleges Unicoin misled investors with false claims about its crypto token being backed by billions in real estate. CEO Alex Konanykhin, board member Silvina Moschini, and former Chief Investment Officer Alex Dominguez face charges for deceptive practices.
How the Lawsuit Came to Light
The SEC’s action follows a Wells notice issued to Unicoin in December 2024, signaling potential enforcement for fraud and unregistered securities. Unicoin allegedly used ads in airports, taxis, and on TV, promoting its tokens as “next generation” secure investments.
The SEC claims these promises were false, and property values in Argentina and the Bahamas were inflated. Konanykhin, rejecting settlement talks in April, vowed to fight the charges in court.
Past SEC Crackdowns on Crypto
The SEC has a history of targeting crypto firms for similar violations. For example, in 2020, Ripple faced a lawsuit for selling $1.4 billion in unregistered XRP tokens, which was later settled with Ripple paying a reduced fine of $50 million. Coinbase saw its 2023 lawsuit dropped, accused of operating as an unregistered securities platform. The SEC also settled with Helium.
In 2025, the SEC had accused Nova Labs of selling unregistered securities through its Helium Hotspots and Discovery Mapping program, which allowed users to exchange personal data for crypto. The lawsuit also included claims that the company had misled investors by falsely claiming partnerships with major companies like Lime, Nestlé, and Salesforce.
The SEC’s lawsuit against Unicoin reveals the risks in the crypto world, as regulators tighten their grip on fraudulent schemes. With over 5,000 investors allegedly deceived, the case could reshape trust in digital currencies. Unicoin’s executives face a tough legal battle, with Konanykhin claiming the SEC’s actions are unfair.
Meanwhile, crypto exchange Kraken, recently freed from its own SEC lawsuit, is rumored to be planning a bold new compliance strategy. Industry watchers are eager to see how Kraken navigates this shifting regulatory landscape.
