The United States Securities and Exchange Commission (SEC) has initiated legal action against Unicoin, a cryptocurrency investment platform, and three senior executives, alleging the dissemination of false and misleading statements regarding the company’s crypto assets.
The alleged misrepresentations reportedly induced over $100 million in investments from unsuspecting individuals.
SEC Files Lawsuit Against Unicorn
The SEC’s formal complaint, filed on May 20, 2025, names Unicoin CEO Alex Konanykhin, board member Silvina Moschini, and former investment chief Alex Dominguez as defendants. The SEC contends that the trio engaged in a scheme to deceive more than 5,000 investors by selling certificates ostensibly conveying rights to receive Unicoin tokens and company stock.
Mark Cave, Associate Director of the SEC’s Division of Enforcement, stated that the defendants “exploited thousands of investors with fictitious promises” beginning in 2022.
Cave explained that they claimed their tokens, once issued, would be backed by real-world assets, including a valuable international real estate portfolio. Cave further asserted that the real estate assets were worth “a mere fraction of what the company claimed,” and that the company’s sales of rights certificates were “illusory.”
The SEC has filed a complaint in Manhattan federal court seeking a permanent injunction against Unicoin and its three executives. The agency alleges the defendants violated several provisions of federal securities laws and demands they surrender their ill-gotten gains.
SEC Allegations of Misrepresentation
The SEC’s allegations center on Unicoin’s misrepresentation of its financial health. The agency claims the company misled investors about its financial situation. Unicoin asserted it had decades of financial runway, but in reality, its reserves generally remained under a year and, at times, dwindled to “no more than four months.”
Furthermore, the SEC alleges Unicoin falsely claimed to have sold over $3 billion in rights certificates, while actual sales only reached $110 million. The complaint also states that Unicoin falsely advertised the tokens and certificates as SEC-registered.
In addition to the charges against the executives, the SEC also implicated Unicoin’s general counsel, Richard Devlin, in violations of federal securities laws. Devlin has agreed to pay a civil penalty of $37,500 without admitting or denying the agency’s claims.
As of this report, Unicoin, Konanykhin, and Moschini have not immediately responded to requests for comment, and we could not immediately reach Dominguez.
The SEC’s action follows earlier reports that indicated scrutiny of Unicoin. On April 21, 2025, former FOX Business reporter Eleanor Terrett reported that the SEC had issued a Wells notice to Unicoin in December regarding a token airdrop and invited them to attend a settlement negotiation on April 18, 2025.
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