Unicoin’s CEO announced last month that he’d rejected the SEC’s offer to negotiate a settlement.
What to know:
The U.S. Securities and Exchange Commission sued Unicoin and its executives Tuesday, alleging they violated securities laws in raising over $100 million for its token.
Unicoin claimed its token was backed by real estate, but never closed the real estate deals and overvalued their properties, the SEC alleged.
The U.S. Securities and Exchange Commission sued crypto company Unicoin and three executives on Tuesday night on fraud charges, saying the company raised over $100 million for tokens that were not actually backed by the real estate its executives claimed.$UNI
Key Allegations
The SEC alleges that Unicoin misled investors by marketing rights certificates that purportedly entitled holders to future Unicoin tokens and company stock. These tokens were promoted as being backed by a diversified portfolio of real-world assets, including international real estate holdings. However, the SEC contends that Unicoin never actually owned the real estate properties it claimed to have acquired, and that the value of these assets was significantly overstated.