According to reports from Wu, on May 20, the U.S. SEC filed a lawsuit against New York company Unicoin and its three executives, accusing them of issuing Unicoin token-related certificates and stocks through false statements, with the amount involved exceeding $100 million and affecting over 5,000 investors. The SEC stated that Unicoin falsely claimed the tokens were backed by billions of dollars in real estate assets, while the actual asset value was far below what was claimed; and it falsely reported sales of over $3 billion, while only raising $110 million. In addition, the company sold unregistered securities. The SEC is seeking a permanent injunction, the recovery of illegal proceeds, and civil fines, while executives may face bans from serving as directors.

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