Unicoin Accuses SEC of Fabricating Case in $100M Crypto Dispute

Unicoin has taken legal action to dismiss a lawsuit filed by the U.S. Securities and Exchange Commission (SEC), arguing that the agency’s allegations misrepresent its regulatory filings and actions. The crypto firm, which is accused of misleading investors and raising over $100 million through allegedly false claims about its crypto offerings and stock, claims the SEC's case is based on distorted interpretations of its disclosures and contractual commitments. In a motion filed with a New York federal court, Unicoin asserts that the SEC has selectively used snippets from communications, mischaracterized routine financial projections, and ignored repeated risk disclosures made in its filings [1].

The SEC’s lawsuit, filed in May, targets Unicoin and three of its top executives, including CEO Alex Konanykhin, for alleged violations of securities laws. The regulator accused the firm of overstating the value of real estate assets in countries like Thailand and Argentina, which were purportedly backing Unicoin tokens and rights certificates. According to the SEC, Unicoin misrepresented the scale of its real estate acquisitions and the value of its assets, misleading investors about the collateral backing its tokens [2]. The agency also alleged that the company falsely claimed its tokens and certificates were SEC-registered, despite not having received such approval.

Unicoin, in its response, refutes these allegations, stating that its real estate transactions were supported by binding agreements and that it measured purchase values in Unicoin tokens rather than cash. The company argues that the SEC conflates the value of property with the value of the tokens used in those transactions. Unicoin also emphasized that it had voluntarily registered securities, provided audited financial statements, and limited participation to accredited investors. It further stated that its past interactions with the SEC had found no violations, and that the current charges are a “fabricated narrative” [1].

The company’s CEO, Konanykhin, has criticized the SEC’s enforcement actions as politically motivated, accusing the agency of using legal pressure to prevent a potential NYSE listing and undermine the firm's presence in the market. He also highlighted that the SEC’s investigations into Unicoin over the past two years had uncovered no wrongdoing. According to Unicoin, the SEC’s enforcement approach relies on circumstantial evidence and mischaracterized statements taken out of context, failing to meet the legal standard for securities fraud [2].

In its motion to dismiss, Unicoin seeks to have the case thrown out with prejudice, meaning the SEC would be barred from re-filing the same allegations. The firm argues that the SEC’s case lacks the necessary proof of intentional deception and that its disclosures were transparent and sufficient to inform investors. This legal challenge comes amid growing scrutiny of the SEC’s approach to crypto enforcement, with Unicoin framing the lawsuit as part of a broader regulatory campaign against the industry [1].

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