The Securities and Exchange Commission leveled fraud charges against cryptocurrency firm Unicoin and its top three executives Tuesday for misleading investors and raising over $100 million in the process.
What Happened: The SEC stated in a press release that Unicoin and its CEO and Board Chairman Alex Konanykhin lured investors with false promises. The company had claimed that its tokens were backed by valuable real estate assets. However, the SEC alleges that these assets were significantly less valuable than Unicoin had stated.
Mark Cave, Associate Director in the SEC’s Division of Enforcement, stated, “the majority of the company’s sales of rights certificates were illusory.” In addition to this, Unicoin and Konanykhin are accused of violating federal securities laws by engaging in unregistered offers and sales of rights certificates.
Disclosure: 82% of retail CFD accounts lose money
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