SEC Sues Unicoin Top Executives for a Massive $100M Fraud
- The US SEC filed charges against Unicoin and its top executives
- Unicoin raised around $100 million by offering real estate-backed tokens
The US Securities and Exchange Commission filed fraud charges against Unicoin and its executives. It claimed that the company has made several false claims regarding its native token and raised $100 million from investors.
The top executives who are facing the heat of the SEC’s charges are the CEO of Unicoin, the former board chair, the senior vice president, the chief investment officer, and the general counsel.
The Associate Director in the SEC’s Division of Enforcement stated,
“We allege that Unicoin and its executives exploited thousands of investors with fictitious promises that its tokens, when issued, would be backed by real-world assets, including an international portfolio of valuable real estate holdings.”
The SEC also suspected that most of the company’s sales of rights certificates were false and their real estate assets were not worth the value they claimed. The Securities and Exchange Commission seeks accountability from Unicoin’s top executives and filed charges against them.
SEC Says Unicoin Violated Securities Laws
The US SEC also accused Unicoin of violating securities laws, similar to the case of how the SEC previously filed charges against Ripple.
So far, the company CEO, Alex Konanykhin, has sold more than 37.9 million of his rights certificates. It is estimated that over 5,000 investors bought these tokens and participated in a more than $100 million offering.
Some of the allegations include,
- Unicoin’s sales of rights certificates do not match the value the company claims to be
- Unicoin sold over $3 billion rights certificates, but raised only $110 million
- The company falsely claimed that its tokens were SEC-registered and US-registered
Meanwhile, the Unicoin CEO expressed his confidence in winning this case. He believes and assures that Unicoin is the most compliant crypto company in the US, in a statement given to Decrypt.
The lawsuit took the crypto community by surprise amidst a shifting regulatory environment in the US. Several crypto companies, such as Ripple, Coinbase, Kraken, and Consensys, had a major relief earlier this year when the SEC dropped charges against them.
The community thought that the US government was offering a favorable environment for the crypto industry. But the SEC proved it wrong, as the Unicoin lawsuit made it to the headlines.
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SEC Sues Unicoin Top Executives for a Massive $100M Fraud
- The US SEC filed charges against Unicoin and its top executives
- Unicoin raised around $100 million by offering real estate-backed tokens
The US Securities and Exchange Commission filed fraud charges against Unicoin and its executives. It claimed that the company has made several false claims regarding its native token and raised $100 million from investors.
The top executives who are facing the heat of the SEC’s charges are the CEO of Unicoin, the former board chair, the senior vice president, the chief investment officer, and the general counsel.
The Associate Director in the SEC’s Division of Enforcement stated,
“We allege that Unicoin and its executives exploited thousands of investors with fictitious promises that its tokens, when issued, would be backed by real-world assets, including an international portfolio of valuable real estate holdings.”
The SEC also suspected that most of the company’s sales of rights certificates were false and their real estate assets were not worth the value they claimed. The Securities and Exchange Commission seeks accountability from Unicoin’s top executives and filed charges against them.
SEC Says Unicoin Violated Securities Laws
The US SEC also accused Unicoin of violating securities laws, similar to the case of how the SEC previously filed charges against Ripple.
So far, the company CEO, Alex Konanykhin, has sold more than 37.9 million of his rights certificates. It is estimated that over 5,000 investors bought these tokens and participated in a more than $100 million offering.
Some of the allegations include,
- Unicoin’s sales of rights certificates do not match the value the company claims to be
- Unicoin sold over $3 billion rights certificates, but raised only $110 million
- The company falsely claimed that its tokens were SEC-registered and US-registered
Meanwhile, the Unicoin CEO expressed his confidence in winning this case. He believes and assures that Unicoin is the most compliant crypto company in the US, in a statement given to Decrypt.
The lawsuit took the crypto community by surprise amidst a shifting regulatory environment in the US. Several crypto companies, such as Ripple, Coinbase, Kraken, and Consensys, had a major relief earlier this year when the SEC dropped charges against them.
The community thought that the US government was offering a favorable environment for the crypto industry. But the SEC proved it wrong, as the Unicoin lawsuit made it to the headlines.
Highlighted Crypto News Today:
Read More