- Unicoin has refused to settle with the Securities and Exchange Commission (SEC)
- Instead, the company has committed to contesting the allegations in court
- CEO Alex Konanykhin has publicly criticized the SEC’s actions as unfair and politically motivated
Unicoin, a Miami-based cryptocurrency investment firm, has opted to challenge the U.S. Securities and Exchange Commission (SEC) in court over allegations of securities law violations. After declining a settlement offer by the SEC’s April 18 deadline, Unicoin’s leadership, particularly CEO Alex Konanykhin, has expressed strong opposition to the charges, labeling them as unjust and driven by remnants of previous SEC leadership. The company is now preparing for a legal battle, asserting its commitment to transparency and compliance.
SEC Issued Wells Notice
The SEC issued a Wells Notice to Unicoin in December, signaling its intent to pursue legal action for alleged violations, including the sale of unregistered securities and deceptive marketing practices. The agency’s concerns centered around Unicoin’s distribution of its tokens through airdrops without verifying investors’ accredited status and claims of the tokens being “asset-backed” and “SEC compliant.”
Unicoin’s business model involves offering tokens that grant investors access to future value backed by the company’s portfolio, which includes media ventures and software services. The company has emphasized its efforts to maintain transparency, providing investors with access to transaction records, audits, and financial reports. The SEC wasn’t satisfied with its explanations, however, and continued to investigate the company.
CEO Calls Situation “Absurd”
CEO Alex Konanykhin has been vocal in his criticism of the SEC’s actions. He described the situation as “absurd,” asserting that Unicoin is “the most compliant crypto company in the U.S.” and is being unfairly targeted. Konanykhin has also suggested that the charges are politically motivated, driven by staff from the previous SEC administration who are resistant to the current regulatory shift under the Trump administration.
In a letter to the SEC’s new Crypto Task Force, Konanykhin requested the termination of the investigation, citing it as an abuse of power and calling for a review of the enforcement officials involved. He has also hinted at the possibility of preemptively suing the SEC for damages to Unicoin’s shareholders and business.
Even as the SEC under new leadership appears to be reevaluating its approach to cryptocurrency regulation, the outcome of this legal battle may influence future enforcement actions and the broader regulatory landscape for digital assets.
