The SEC has just charged Unicoin, based in New York, along with three senior executives for defrauding over 5,000 investors, raising more than $110 million through misleading claims about tokens and stocks, sparking major controversy in the crypto industry.
Allegations from the SEC
On May 20, 2025, the SEC filed a lawsuit in the Southern District of New York, accusing CEO Alex Konanykhin, board member Silvina Moschini, former Investment Director Alex Dominguez, and legal advisor Richard Devlin of deceiving investors. Unicoin promoted 'certificates of rights' linked to the token, falsely claiming that the token was backed by valuable international real estate and had raised $3 billion, while in reality, it had only achieved $110 million. #SEC asserts that the collateralized assets are worth only a fraction of what was advertised, calling this investor exploitation, according to Mark Cave, Deputy Director of the SEC's Enforcement Division.
Devlin, not admitting wrongdoing, agreed to pay a fine of $37,500 and accepted a permanent ban. Unicoin used advertising at airports, taxis, and television to attract investors, promoting itself as a 'new generation safe investment.'
Reaction and Context
Konanykhin claims he will counter-sue, stating on #Decrypt April 2025: “I will win in court. It is strange that the most compliant crypto company in the U.S. is being targeted by the SEC.” He believes the lawsuit is driven by “remaining officials from the Gensler era” to cover up mistakes, not reflecting the current SEC leadership's views under Trump. This comes as the SEC withdraws major lawsuits against Coinbase, Ripple, Kraken, and Consensys, showing a policy change under the new administration.
Impact and Outlook
With Bitcoin ($104,699) and Ethereum ($2,600) growing, crypto fund inflows reached $3.4 billion last week, and the Unicoin lawsuit could impact investor confidence. In the next 1-2 years, if Konanykhin wins, Unicoin may regain its reputation; if the SEC wins, the crypto industry faces regulatory pressure. Regardless, the case underscores the need for transparency for sustainable development.
Conclusion: Who Will Win?
The SEC accused Unicoin of $110 million fraud with misleading advertising, but Konanykhin countered that this is a conspiracy by former officials. Under Trump’s policy, the outcome of the lawsuit will shape the future of crypto, requiring investors to stay closely monitored.
Risk warning: Crypto investment carries high risks due to price volatility and legal instability. Please consider carefully before participating. #anhbacong