SEC Charges Unicoin in $100 Million Crypto Fraud Scheme

The U.S. Securities and Exchange Commission has filed explosive charges against Unicoin, alleging the crypto startup defrauded investors of over $100 million. The regulator claims the company falsely advertised its Unicoin tokens as asset-backed while grossly inflating fundraising figures.

According to the SEC complaint, Unicoin misled more than 5,000 investors by claiming $3.3 billion in raised capital and billions in asset backing. Reality showed just $110 million actually raised. CEO Alex Konanykhin and other executives now face civil charges, with General Counsel Richard Devlin already settling without admission of guilt.

The case marks another high-profile enforcement action as regulators intensify scrutiny of crypto ventures making unsubstantiated claims about asset backing and regulatory compliance. ’When crypto projects misrepresent fundamentals, it undermines trust across the entire digital asset ecosystem,’ said one Wall Street analyst following the case.