Unicoin’s Dramatic Downfall: SEC’s $100M Fraud Allegations Unveiled! 😱💰

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Ah, mesdames et messieurs! Gather ’round, for the grand tale of Unicoin unfolds! The illustrious US Securities and Exchange Commission (SEC), in a fit of righteous indignation, has charged our dear crypto investment, Unicoin, along with its three esteemed executives, for allegedly leading investors astray and pilfering a staggering $100 million! What a scandal! 🎭💸

Crypto Company Hit With SEC Lawsuit

On a fateful Tuesday, the SEC, like a vigilant guardian of the realm, announced it had filed a lawsuit in the hallowed halls of the US District Court for the Southern District of New York against the crypto company Unicoin, its gallant CEO and Board Chairman, Alex Konanykhin, the former president, Silvina Moschini, and the former CIO, Alex Dominguez. A veritable trio of mischief-makers! 🕵️‍♂️

These noble defendants stand accused of weaving a web of falsehoods and misleading statements regarding the Unicoin token and the offering of the company’s common stock. Oh, the audacity! They are charged with violations of the antifraud provisions of the federal securities laws. How quaint! 🧐

Moreover, our dear Konanykhin and Unicoin have been accused of flouting the registration provisions of the Securities Act of 1933. A control person, indeed! What a title to bear! 👑

And let us not forget Richard Devlin, Unicoin’s general counsel, who is also in hot water for making similar false statements in private placement memos. It seems the plot thickens! 🍵

According to the ever-watchful Mark Cave, Associate Director in the SEC’s Division of Enforcement, Unicoin and its executives “exploited thousands of investors with fictitious promises that their tokens would be backed by real-world assets, including a portfolio of valuable real estate holdings.” Alas, the reality was far less glamorous! 🏚️

“The real estate assets were worth but a pittance of what was claimed, and the majority of the company’s sales of rights certificates were mere illusions. The most senior executives are alleged to have perpetuated this grand deception, and today’s action seeks to hold them accountable,” Cave explained, with a flourish! 🎩

Unicoin To ‘Fight Back’ Allegations In Court

The SEC’s complaint asserts that since February 2022, Unicoin and Konanykhin have been engaging in unregistered offers and sales of rights certificates. Oh, the scandal! With Konanykhin offering and selling over 37.9 million of his rights certificates, targeting investors the company had barred from participating in the offering. How clever! 🧠

This executive trio is accused of charming over 5,000 investors into purchasing rights certificates “through false and misleading statements that portrayed them as investments in safe, stable, and profitable ‘next generation’ crypto assets.” They claimed to have sold more than $3 billion in rights certificates, while the reality was a mere $110 million. What a jest! 🎭

The SEC also alleges that the crypto company falsely claimed the rights certificates and Unicoin tokens were “SEC-registered” or “US-registered.” They even went so far as to market these rights certificates in major airports, New York taxis, on television, and on social media. A true spectacle! 📺

Thus, the complaint seeks permanent injunctive relief, disgorgement of ill-gotten gains with prejudgment interest, and civil penalties against the defendants. Additionally, it seeks to bar Konanykhin, Moschini, and Dominguez from their lofty positions. How the mighty have fallen! ⚖️

In an April interview with the illustrious crypto journalist and podcast host Eleanor Terret, Unicoin’s CEO revealed the company’s intention to fight the SEC’s allegations in court, as whispers of a potential lawsuit began to circulate. A valiant stand, indeed! ⚔️

Following the financial watchdog’s complaint, Konanykhin lamented the SEC’s actions, claiming they are persecuting “the most compliant cryptocurrency company in the country using blatantly false charges.” Oh, the irony! 😅

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2025-05-22 13:53