The US Securities and Exchange Commission on Tuesday night filed a lawsuit against the crypto company Unicin and three officials on charges of fraud, stating that the company raised more than $ 100 million for the tokens that were actually not really supported by real estate, its officials claimed.
Sec sued UnicinCEO Alexander Konnakhin, former Board Chairman Maria Moshini, Senior Vice President and General Council Richard Deavalin and former Chief Investment Officer and Investor Relations Officer Alejandro Dominguase on Securities Law violations,
In the midst of BlameThe SEC said that Unicoin had never actually said in ownership of real estate assets that it had told investors, and that the values of those properties were inflated.
“For example, between September 2023 and January 2024, promoting defendants announced the acquisition of properties in Argentina, Thailand, Antigua, and Bahamas, allegedly assumed over $ 1.4 billion with total assessed values of more than $ 1.4 billion; In fact, most of those transactions were not closed and the actual joint price was not more than $ 300 million.
The SEC alleged that the defendants “reduced the sales of the company” of their rights certificate, and suggested to investors in social media posts that it had really raised more money than it, the SEC alleged. While Unicin claimed that he had sold $ 3 billion in sales by June 2024, it was actually no more than $ 110 million in its rights certificate, according to the complaint.
In addition, Unicoin advertised its rights certificate, promising up to 9 million per cent of the return, SEC alleged, taxi cabs, ghats, “office building elevator screen,” digital billboard, coaster, television programs, news websites and public Wi-Fi kiosk.
“In addition to promoting the statements of the defendants, examples include: (A) Social media and website posts which in the last 10 years avoid potential returns of 9,000,000% on the basis of Bitcoin’s 9,000,000% increase and asked investors to take advantage of the early days of Unicoin and even highlight them today.
Read more: Unicoin CEO: Why are we still under SEC gun?
Unicoin received a Wells notice from SEC last December, in which the company was informed that the regulator – then led by former president Gary Gensler – intended to register allegations of securities fraud. Last month, Konkhin sent a letter to the shareholders of Unicin, in which he was informed that the company rebuilt the SEC’s effort to settle the allegations, in which he described as “ultimatum” to attend a settlement talk meeting till 18 April.
“We refused to show,” Konkhin told Coindsk in an April 1 interview, saying that the SEC had sought some pre-sitting, which he had considered “unacceptable” and claiming that the SEC investigation had caused the company to “loss of multi-arb-dollars”.
Read more: Unicoin CEO rejected SEC’s effort to settle the enforcement investigation
Neither Konkhin nor Unicoin spokesperson responded to coindsk’s request to comment by press time. Shared in a press release earlier this year A Wall Street Journal ArticleA spokesman said, “Unicoin, the only fully fully US-regulated, US-regulated, US-audited and US-public reporting Cryptocurrency Company has consistently complied with all the rules.”
According to court documents, SEC is demanding hatred and civil punishment.
