In a major escalation of its crackdown on crypto securities violations, the U.S. Securities and Exchange Commission (SEC) has charged Unicoin Inc. and three of its top executives with orchestrating a $100 million securities fraud scheme targeting retail investors.
The enforcement action, announced in an official SEC press release dated May 21, 2025, accuses the firm of misleading the public about the nature and backing of its digital asset, Unicoin, while illegally raising funds from thousands of investors across the globe.
SEC: Unicoin Sold Unregistered Securities with False Promises
According to the complaint filed in the Southern District of New York, Unicoin and its leadership — including founder Alex Konanykhin, executive chair Ana Diskaya, and Unicoin co-founder Sean King — offered and sold Unicoin tokens as unregistered securities between 2022 and 2024.
The SEC alleges that the company misled investors by claiming that Unicoin was “backed by a diversified portfolio of equity stakes in high-growth companies,” despite offering no verifiable evidence or audited disclosures to support those claims.
“Unicoin lured investors with promises of transparency and asset backing, but delivered neither,” said Gurbir Grewal, Director of the SEC’s Division of Enforcement.
What Is Unicoin — and Why It Drew Regulatory Fire
Unicoin gained attention in 2022 as a self-described “next-generation asset-backed cryptocurrency,” often promoted as an alternative to speculative meme coins. Its founders claimed it would be backed by real assets — specifically, equity in pre-IPO startups — and would deliver more sustainable value.
The SEC, however, argues that investors were fed marketing hype, not real financials. The offering was never registered, and Unicoin allegedly continued to promote and sell the token even after being warned by regulators.
In total, the SEC estimates that over $100 million in digital assets and fiat currency was raised from more than 10,000 investors, many of whom were unaware they were purchasing an unregistered security.
Legal Action and Penalties Sought
The SEC is seeking:
- Permanent injunctions against Unicoin and the individuals involved
- Disgorgement of ill-gotten gains with prejudgment interest
- Civil penalties for securities law violations
- Officer-and-director bars against the named executives
As of now, no criminal charges have been filed, but parallel investigations are reportedly underway.
Growing Pattern of Enforcement in Crypto
This case marks another aggressive move by the SEC in its ongoing effort to rein in unregistered token offerings, particularly those pitched as “safe” or “asset-backed.” The agency has brought similar charges against other high-profile crypto projects in recent months, signaling that compliance is no longer optional for token issuers — especially those targeting U.S. investors.
The Unicoin case reinforces a clear message: if a token is offered to the public with the promise of profits from third-party efforts, it likely meets the Howey test — and falls under the SEC’s jurisdiction.
Final Thoughts
The SEC’s case against Unicoin could have wide-reaching implications, especially for crypto projects using vague “asset-backed” claims to attract retail capital. With the regulatory net tightening, both investors and builders are being reminded: transparency, registration, and accountability matter.
As enforcement actions increase, the era of unregulated token sales appears to be closing fast.
