The SEC continues to pursue allegations against Unicoin, but the Miami crypto company is determined not to back down.
#UNICoin – the Miami-based cryptocurrency investment company – is facing a major legal battle with the US Securities and Exchange Commission (SEC), after the agency officially announced it would continue its allegations against the company. However, Unicoin CEO Alex Konanykhin insists he will not accept any settlement, but instead will take the case to court.
Unicoin and the deadline of 4/18: Refusing to settle, ready to go to court
In December 2024, #SEC sent a Wells notice to Unicoin, signaling the intention to bring formal charges against the company for violating registration and anti-fraud regulations under federal securities laws.
The SEC gave Unicoin a deadline of April 18 to settle, but that deadline has passed with no settlement reached. Konanykhin declares:
“I fully intend to win this case in court. It's ridiculous that the most compliant crypto company in the US is the only one being pursued by the SEC.”
What makes Unicoin special? Why is it being watched by the SEC?
Unlike publicly traded tokens, UNIC – Unicoin's token – is not traded in the US. Instead, it is marketed as a 'future value token', akin to a promise of value based on the company's investment asset portfolio. Unicoin has also built its own ecosystem including a media company, software services, and personnel.
However, the company's extensive promotional campaign in New York – from ads on taxis, billboards to buses – has attracted unwanted attention from the SEC, leading to the investigation.
Allegations from the SEC: Not just registration violations
Unlike previous lawsuits where the SEC accused companies of violating securities registration, Unicoin also faces fraud allegations, including:
Distributing UNIC through airdrops without checking the status of 'accredited investors'.
Promoting the token as 'asset-backed' and 'SEC compliant' despite lack of evidence.
Inflating token sales figures and making false claims about property ownership in multiple countries.
Reselling restricted securities without complying with legal exemption requirements.
Unicoin CEO hits back: 'This is the residue of the Gensler era'
Konanykhin completely refutes the allegations, claiming they are a result of the SEC's internal resistance to policy changes under President Trump. He asserts:
“I don't think this reflects the current leadership of the SEC. These are actions of former officials from the Gensler era, trying to win before all lawsuits are dismissed.”
He specifically mentioned an assistant director named Brad Ney – who has worked at the SEC for 10 years – as the one leading the Unicoin investigation.
In fact, Unicoin is considering suing the SEC for causing billions in damages to the company and its shareholders.
The changing landscape in Washington: A political or legal battle?
After the Trump administration took power and appointed acting SEC Chairman Mark Uyeda, many high-profile crypto lawsuits were withdrawn – including cases against Coinbase, Ripple, Kraken, and Consensys.
However, the new SEC still takes a tough stance on cases with fraudulent elements, and Unicoin is one of the few remaining companies under serious investigation.
Meanwhile, Unicoin is trying to have direct dialogue with the Crypto Task Force – a group that has met with over 60 crypto companies since February – but has yet to receive a response.
Contacting the crypto community and Binance users
The confrontation between the SEC and Unicoin clearly reflects the complex and inconsistent legal situation regarding the cryptocurrency market in the US. For users investing or exploring crypto on exchanges like Binance, Unicoin's story serves as a reminder that:
No matter how compliant the company may be, there is still a risk of legal repercussions from regulators.
Political changes may directly impact the trend of regulation or loosening of control over the crypto industry.
The marketing of tokens and the 'future value' model need to be closely regulated, especially in the US market.
In conclusion: 'Not giving up' or 'putting oneself at greater risk'?
Unicoin is betting everything on resisting the SEC in court. If they win, they could become a symbol of 'crypto complying but wronged'. But if they lose, the legal and financial consequences could be severe.
In the context of the cryptocurrency market gradually regaining support from the new government, companies like Unicoin are evidence that the legal battle is far from over – and users should approach new tokenization projects with caution.
Risk warning: The cryptocurrency market is always fraught with legal, price, and liquidity risks. This article is not investment advice. Users should thoroughly research and consider before participating in any crypto project.