New York, NY – The U.S. Securities and Exchange Commission (SEC) has filed charges against Unicoin, a New York-based cryptocurrency company, and three of its top executives, accusing them of defrauding over 5,000 investors out of more than $100 million. The SEC alleges that Unicoin misled investors with false claims about its token being backed by billions in real estate assets, alongside fabricated SEC registration credentials.

The complaint, filed on May 20, 2025, in the U.S. District Court for the Southern District of New York, names Unicoin’s CEO Alex Konanykhin, former President Silvina Moschini, and ex-Chief Investment Officer Alex Dominguez as defendants.

According to the SEC, the executives orchestrated a scheme that raised approximately $110 million by promoting “rights certificates” tied to Unicoin tokens through aggressive marketing campaigns, including advertisements in airports and on taxi cabs. The SEC claims Unicoin falsely advertised that it had raised $3 billion and that its tokens were secured by real estate investments valued in the billions.

In reality, the SEC states, the assets were worth only a fraction of what was claimed, with many real estate deals never finalized.

Mark Cave, Associate Director in the SEC’s Division of Enforcement, emphasized the severity of the deception. “Unicoin and its executives exploited thousands of investors by presenting fictitious promises about the value of their assets,” Cave said in a statement released on May 21, 2025. The SEC further alleges that Unicoin misrepresented its regulatory status, falsely claiming its securities were registered with the agency, a tactic that lured investors into a false sense of security.

The charges against Unicoin come amid a shifting regulatory landscape for cryptocurrency under the Trump administration. In recent months, the SEC has shown signs of a more lenient approach toward the crypto industry, dropping enforcement actions against major players like Coinbase and Ripple, as reported by Decrypt on May 21, 2025. This marks a stark contrast to the aggressive oversight seen during the Biden administration, when former SEC Chair Gary Gensler labeled the crypto sector “the Wild West” and pursued numerous lawsuits against digital asset firms.

⚖️ The SEC has filed a lawsuit against crypto company Unicoin and its executives, accusing them of a $100 million fraud.

The company raised funds by claiming its token was backed by real estate, but the deals were never finalized, and the property values were significantly… pic./I7mzKDZt4V

— Constantin Kogan (@constkogan) May 21, 2025

Unicoin’s case, however, underscores that the SEC is still willing to crack down on outright fraud. The company allegedly promised investors returns as high as 9,000,000%, comparing its tokens to the early days of Bitcoin, according to a post by crypto analyst constkogan on X on May 21, 2025.

These claims, the SEC argues, were not only baseless but also designed to exploit the hype surrounding cryptocurrency investments.

Investor reactions on social media platforms like X have ranged from shock to frustration. “5,000 investors?? That’s wild,” wrote user Arpita saha on May 21, 2025, in response to a post by mobymedia announcing the charges. Another user, Sam, quipped, “Unicoin = Uniconned,” reflecting a sentiment of betrayal among those affected.

The SEC’s complaint seeks to recover the funds raised from investors, alongside civil penalties and a permanent injunction to prevent Unicoin and its executives from engaging in future securities violations.

🚨JUST IN: The @SECGov has charged @Unicoin_News and execs including CEO Alex Konanykhin and Silvina Moschini for allegedly defrauding 5,000+ investors with false and misleading claims that its crypto token was backed by billions in real estate. SEC says only ~$110M raised, not… https://t.co/NIzRRL4Tum

— Eleanor Terrett (@EleanorTerrett) May 21, 2025

CEO Alex Konanykhin has denied the allegations and vowed to fight the charges in court, according to a statement reported by journalist Eleanor Terrett on X on May 21, 2025. Konanykhin told Terrett in a prior interview last month that he believed the SEC’s actions were unfounded, though the agency’s latest filing suggests a robust case backed by evidence of misleading practices.

This case highlights ongoing challenges in the cryptocurrency industry, where rapid growth and innovation often outpace regulatory oversight. For investors, the Unicoin scandal serves as a stark reminder of the risks in the largely unregulated crypto market. As the SEC continues to balance its enforcement efforts with the Trump administration’s more crypto-friendly policies, the outcome of this lawsuit could set a precedent for how fraudulent schemes are addressed in the evolving digital asset space.

The case is ongoing, with a court date yet to be announced. Meanwhile, the SEC has urged investors to exercise caution and verify the legitimacy of crypto projects before investing, emphasizing the importance of transparency and compliance in the industry.