The U.S. Securities and Exchange Commission (SEC) has initiated legal action against New York-based Unicoin and its three key executives, including CEO Alex Konanykhin. The SEC’s lawsuit, filed on May 21, alleges that these individuals engaged in the dissemination of misleading statements regarding the sale of controversial equity certificates and common stock linked to Unicoin. These certificates supposedly granted rights to a future cryptocurrency asset, enticing investors through an extensive marketing campaign across major platforms, including television and social media.
According to the SEC’s findings, more than 5,000 investors were reportedly misled into purchasing these certificates. The SEC’s complaint highlights violations of critical securities laws, claiming that Konanykhin sold over 37.9 million of his own certificates unlawfully, intentionally circumventing regulatory protections. This lawsuit underscores the importance of compliance within the crypto space, as the SEC seeks significant penalties, including injunctions, against the defendants to prevent future violations.