SEC sues Unicoin over fraudulent asset-backed certificates and illiquid tokens and brings charges against Alex Konanykhin, Silvina Moschini, and Alex Dominguez. They are accused of making false statements when offering certificates that allegedly conveyed rights to Unicoin tokens – according to the SEC, the company had sold more than $3 billion in rights certificates when it raised no more than $110 million.
What About That Asset Backing, Unicoin?
SEC has filed charges against Unicoin, Inc. and three of its former and current top executives – CEO and Board Chairman Alex Konanykhin, former President and board member Silvina Moschini, and former Chief Investment Officer Alex Dominguez – for misleading investors in the sale of rights certificates for Unicoin tokens and company stock.
More specifically, the SEC alleges that Unicoin and its executives misled thousands of investors by claiming that the tokens would be backed by real assets, including an international real estate portfolio and pre-IPO equity. However, as the SEC notes, these assets “were worth a mere fraction of what the company claimed,” and most of the sold certificates “were illusory.”
Moreover, Unicoin explicitly marketed both its offering and its assets, including the certificates, as “SEC-registered” and “U.S. registered,” while actually, they were not, raising questions not only about asset backing but regulatory compliance overall.
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However, the SEC’s claims against Unicoin do not stop there. The agency also states that Konanykhin further violated securities laws by offering 37.9 million certificates to ineligible investors, thereby circumventing registration restrictions. As a result, the complaint includes allegations of violating both the antifraud provisions and the registration provisions of the Securities Act of 1933.
Also named as a defendant is Unicoin General Counsel Richard Devlin, who is accused of “negligently making similar misstatements” in private placement memoranda. Notably, without admitting or denying the SEC’s findings, Devlin consented to a permanent injunction and agreed to pay a $37,500 civil penalty.
The case will be heard in the U.S. District Court for the Southern District of New York. The complaint seeks permanent injunctive relief, disgorgement with prejudgment interest, and civil penalties against all four defendants.
Conclusion
This is a major enforcement action involving multiple individuals at the top of the company – and it raises serious concerns about Unicoin’s operations and reputational standing. That said, formal proceedings have not yet begun, and the defendant’s side of the story has not been heard. Stay with us – we will be following the case closely.
