Unicoin Fights Back: Bold Move to Dismiss SEC Fraud Lawsuit in NY Court

Unicoin throws down the legal gauntlet against regulators.

Legal Showdown Escalates

New York's courts just became the latest battleground in crypto's regulatory war. Unicoin isn't just defending itself—it's going on the offensive, seeking full dismissal of the SEC's fraud allegations. The move signals a growing trend of crypto firms refusing to settle and choosing to fight instead.

Regulatory Chess Match

The filing argues the SEC overstepped its authority—a familiar refrain in crypto circles lately. Legal experts note the strategy mirrors other high-profile crypto cases where jurisdictional challenges gained traction. Meanwhile, trading volumes barely blinked—because nothing says 'confidence' like maintaining liquidity during potential fraud allegations.

Wall Street's watching this play out with popcorn-ready anticipation. After all, what's finance without a little courtroom drama to spice up those quarterly reports?

SEC Sues Unicoin, Executives Over $100M Token Fraud Claims

In May, the SEC sued Unicoin and its CEO, Alex Konanykhin, including its board member, Silvina Moschini, and former investment chief Alex Dominguez. The SEC said they tricked investors into giving $100 million by lying about certificates linked to Unicoin tokens and stock. 

The SEC claimed that the firm falsely said its tokens were backed by billions in assets like real estate and pre-IPO companies, but the real value was much lower. They also said Unicoin exaggerated sales at $3 billion when it was only $110 million and wrongly claimed the tokens were SEC-approved.

Unicoin argued that the SEC doesn’t have enough evidence to prove it tried to mislead investors, something that’s required to make a securities fraud case. The company said it had openly warned about risks, but the regulator misread its plans and treated them as lies.

A company executive explained that while Unicoin itself is backed by assets, its tokens are not. They also clarified that the tokens weren’t created in response to the SEC’s allegations, and that values tied to its real estate deals, including sales, are still being finalized.

Unicoin described the SEC’s lawsuit as a messy attack built on weak evidence and misinterpretations. The company has asked the court to dismiss the case permanently so it can’t be refiled. For now, the court is reviewing the matter, and neither side has made further comments.

Also Read: Ripple Finally Ends Lawsuit with SEC After Court Approves Dismissal