New York News – The U.S. Securities and Exchange Commission (SEC) filed charges against New York-based Unicoin and its executives on May 20, claiming that they planned a fraud case worth over $100 million and misled more than 5,000 investors.
The SEC said ina statement that Unicoin and its CEO and Chairman of the Board Alex Konanykhin, former president and current board member Silvina Moschini, and former Chief investment officer Alex Dominguez False and misleading statements were made when issuing certificates promising the right to obtain Unicoin tokens and stocks of the crypto asset.
Regulators said that Unicoin falsely claimed that its tokens were backed by billions of dollars worth of real estate and equity in unlisted companies, but the actual asset value was far lower than the amount it claimed. Furthermore, the company also exaggerated the sales situation of the rights certificates, claiming that it had sold certificates worth over 3 billion US dollars, while the actual fundraising was only about 110 million US dollars. Moreover, these tokens and certificates were falsely advertised as having been registered with the US SEC, while in reality they were not.
The SEC also pointed out that Unicoin has been promoting its token certificates to the public through various promotional activities, including advertising at major airports, thousands of taxis in New York City, as well as on TV and social media. These promotions describe the investment as a safe, stable and profitable “next-generation” crypto asset to persuade investors to purchase.
The SEC has filed a lawsuit in the Manhattan Federal Court, accusing Unicoin and three of its executives of violating multiple securities laws. It demands a permanent injunction against them, the recovery of illegal gains, and the imposition of civil fines. At the same time, it may also prohibit these executives from serving as directors and senior managers of the company.
Furthermore, Richard Devlin, the general counsel of Unicoin, has also been accused of violating federal securities laws. He made similar misleading statements in the private placement memorandum used by the company for the sale of rights certificates and common stocks. Devlin paid a civil fine of $37,500 but neither admitted nor denied the charges of the SEC.
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