The Unicoin crypto fraud case has become one of the most talked-about regulatory crackdowns in the crypto industry in 2025. The U.S. Securities and Exchange Commission (SEC) has filed a $100 million lawsuit against Unicoin, a New York-based crypto investment firm, accusing the company and its top executives of deceiving thousands of investors through false asset claims and unregistered securities. This case signals increasing pressure on crypto projects to maintain transparency and comply with federal securities laws.
SEC Investigates Unicoin Crypto Fraud Scheme
Filed on May 20 in the U.S. District Court for the Southern District of New York, the complaint names Unicoin CEO and Chairman Alex Konanykhin, former President Silvina Moschini, and former CIO Alex Dominguez. According to the SEC, these individuals made a series of deceptive statements about the Unicoin token and its related securities offerings, violating federal anti-fraud laws in the process.
Mark Cave, Associate Director of the SEC’s Division of Enforcement, emphasized the severity of the misconduct:
“Unicoin and its leadership sold a vision to thousands of investors based on false promises, claiming that the tokens would be backed by high-value real estate and other tangible assets.”
Even so, the SEC later found that the company’s real estate claims were vastly overstated and that many of the asset valuations were misleading or unsubstantiated. A significant portion of the firm’s revenue reportedly came from selling “rights certificates” that had little to no actual value.
“Unicoin’s most senior executives are alleged to have perpetuated the fraud, and today’s action seeks accountability for their conduct,” Cave added.
The SEC’s charges didn’t stop with the executive trio. Richard Devlin, Unicoin’s general counsel, was also implicated. He allegedly distributed misleading information in offering documents tied to Unicoin’s rights certificates and common stock, further violating federal securities regulations.
Breakdown of the Allegations in the $100M Unicoin Crypto Fraud
The SEC outlines that since February 2022, Unicoin had been issuing and selling investment products referred to as “rights certificates” without proper registration. Konanykhin alone is said to have sold nearly 38 million of these certificates, even targeting individuals who had previously been deemed ineligible to invest.
Over 5,000 investors were lured in with claims that these certificates were safe, profitable, and represented a new class of stable crypto assets. Unicoin even claimed to have raised $3 billion at one point, yet official estimates place the real figure closer to $110 million.
Additionally, the firm promoted its products as being registered with the SEC or compliant with U.S. securities regulations, despite lacking such credentials.
Their aggressive marketing included ad placements in high-traffic locations such as airports, on New York taxis, television networks, and social media – strategies that bolstered their credibility while masking the true nature of the offering.
SEC Seeks Legal Penalties and Investor Restitution
The regulatory body has requested a wide range of penalties and actions, including:
- Permanent bans to prevent future violations.
- Repayment of illicit gains plus interest.
- Significant financial penalties.
- Barring the executives from serving in leadership roles at public companies.
These measures are intended to not only punish the individuals involved but also to ensure harmed investors have a path to potential recovery.
Unicoin Responds: “We Will Fight”
In response to the lawsuit, Unicoin’s CEO Alex Konanykhin dismissed the accusations as baseless. In an April interview with crypto journalist Eleanor Terret, he stated:
“We lament the SEC’s actions, affirming they are persecuting the most compliant cryptocurrency company in the country using blatantly false charges.”
His remarks reflect the ongoing tensions between crypto enterprises and U.S. regulators as compliance frameworks evolve and enforcement intensifies.
What This Means for the Broader Crypto Industry
The Unicoin crypto fraud case marks another significant step in the SEC’s broader campaign to rein in deceptive practices within the digital asset space. It highlights the importance for companies to be forthright with investors and to ensure that all marketing and offering materials comply with securities laws.
This case is more than just about one firm; it sends a message to the entire industry. As crypto continues to expand, so does the responsibility of companies to operate transparently and lawfully.
Final Words
The SEC’s aggressive pursuit of Unicoin and its executives’ $100M crypto fraud serves as a stark reminder: crypto companies that prioritize type over honesty will face legal consequences. With regulatory agencies sharpening their focus, the era of unaccountable digital finance may be nearing its end.
The outcome of this case could have far-reaching implications, potentially setting a precedent for how future crypto fraud cases are handled in U.S. courts.
