Unicoin Executives Charged in $100M Crypto Fraud Scheme

The individuals named in the complaint include CEO and Board Chairman Alex Konanykhin, former president and current board member Silvina Moschini, and former Chief Investment Officer Alex Dominguez. According to the SEC, these executives promoted rights certificates and Unicoin stock using misleading claims and fictitious representations of asset backing.

Unicoin reportedly marketed the offering aggressively through major public campaigns, including advertisements at airports, on New York City taxis, and across television and social media platforms. Through these promotions, the company convinced over 5,000 investors to purchase rights certificates.

The SEC alleges that Unicoin falsely stated the tokens were backed by billions of dollars in real estate and equity interests in pre-IPO companies, even though the actual value of the company’s assets was only a small fraction of that. Unicoin also claimed to have sold more than $3 billion in rights certificates, while records show the company raised no more than $110 million. Additionally, the company and its executives misrepresented that the certificates and tokens were SEC-registered, when in fact they were not.

Mark Cave, Associate Director of the SEC’s Division of Enforcement, stated that the company’s senior leadership exploited thousands of investors with empty promises about asset-backed crypto tokens, while the assets did not exist at the level they claimed. He emphasized that the SEC’s action seeks accountability for these deceptive practices.

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The SEC also alleges that Konanykhin violated federal securities laws by making unregistered sales of over 37.9 million rights certificates. These sales were directed at investors the company had previously excluded in order to avoid jeopardizing its registration exemption.

The SEC’s complaint, filed in the U.S. District Court for the Southern District of New York, charges Unicoin, Konanykhin, Moschini, and Dominguez with violations of federal antifraud provisions. Konanykhin and Unicoin also face charges related to unlawful registration practices, and Konanykhin is further charged as a control person for Unicoin’s fraudulent conduct. The SEC is seeking permanent injunctions, civil penalties, disgorgement of illicit gains with interest, and officer-and-director bans for all three executives.

Additionally, Unicoin’s general counsel Richard Devlin has been charged for negligently making similar misstatements in the company’s private placement documents. Without admitting or denying the allegations, Devlin has agreed to a final judgment that includes permanent injunctive relief and a civil penalty of $37,500.

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