$100 Million Crypto Scam 2025: New York-based Unicoin Inc. and a number of its senior officials have been accused by the U.S. Securities and Exchange Commission (SEC) for using false promises to defraud thousands of investors and make over $100 million. The SEC claims that Unicoin and its officials, including CEO and Board Chairman Alex Konanykhin, board member SilvinaMoschini, and former Chief Investment Officer Alex Dominguez, misled investors with grandiose claims about their crypto-currency scheme.
They offered “rights certificates” that were meant to grant users access to Unicoin tokens in the future and they said that these tokens would be supported by investments in private businesses and valuable real estate. However, the SEC claims that these assurances were mostly fabricated. The firm received only approximately $110 million from more than 5,000 investors, far less than the $3 billion it promised, and the real estate it boasted about was only worth a small fraction of what was stated.
Charges of SEC Crypto Scams Reveal Unicoin
Unicoin promoted their cryptocurrency investment program with a vigorous multi-platform marketing effort. Advertisements appeared on TV, in cabs across New York City, at airports, and on social media.They even misled investors by claiming that their products were “SEC-registered.”Through the illusion of credibility created by these advertising activities, the business was able to persuade over 5,000 retail investors to support the initiative.
According to the Securities and Exchange Commission, these strategies were crucial to the purported hoax because they enabled Unicoin to pass itself off as a safe and cutting-edge cryptocurrency venture while concealing the absence of real asset support and regulatory permission.
- Official charges of violating federal securities laws, including fraud and unregistered sales, have been brought against Unicoin and its officials by the SEC.
- In addition to further fines and prohibitions from holding leadership roles in publicly traded corporations, the SEC Lawsuit Against Crypto Firm requests that they return the money they wrongfully earned.
- Richard Devlin, the general attorney for Unicoin, was also not exempt. He has been charged with using investor documents to disseminate false information.
- Devlin has agreed to settle his charges and pay a $37,500 penalty without admitting or denying the allegations.
SEC Charges First U.S. Crypto Company
In an effort to combat unregistered securities offerings, false asset claims, and misleading marketing in the digital asset market, the SEC has launched a number of crypto enforcement proceedings, the most recent of which being the Unicoin case. Investors are cautioned by this case about the increasing number of cryptocurrency frauds that pose as respectable investment possibilities.
The commission underlined how crucial it is to confirm that coins or offers are legitimately registered and supported by actual assets as stated. If the case proceeds, Unicoin may face harsh financial penalties and regulatory restrictions. Future Securities and Exchange Commission rules regarding crypto advertising, investor protection, and the application of securities laws in the decentralized finance (DeFi) industry may also be influenced by the case’s decision.