Crypto Investment Firm Unicoin Prepares for Courtroom Battle with SEC
Crypto investment firm Unicoin is gearing up for a courtroom clash with Wall Street’s top cop, as the Securities and Exchange Commission has signaled plans to press ahead with its pursuit of the Miami-based company, Decrypt has learned.
Refusing to Settle
According to co-founder Alex Konanykhin, the SEC’s Division of Enforcement gave Unicoin until April 18 to enter into settlement talks over allegations of violating federal securities laws. The deadline has passed, and Konanykhin has made it clear that he has no intention of settling, vowing to fight the claims in court.
“I fully intend to win this case in the courtroom,” he told Decrypt in an interview. “I think it’s grotesque that the most compliant crypto company in the U.S. remains the only one being persecuted by the SEC.”
Legal Battle Ahead
Despite reporting financial disclosures to the SEC for over three years, Unicoin is now facing accusations of violating antifraud provisions of federal securities laws. Konanykhin has not ruled out preemptively suing the agency for damages to Unicoin’s shareholders and business.
An SEC spokesperson declined to comment on the matter.
Changing Regulatory Landscape
The SEC’s pursuit of Unicoin comes amidst a shift in regulatory priorities under new leadership. While the agency has rescinded enforcement actions against other crypto companies, it is moving forward with allegations against Unicoin, signaling a commitment to combat fraud in the industry.
According to a Wells notice sent in December, the SEC claims Unicoin engaged in fraudulent activities, including misrepresenting its native token, UNIC, as asset-backed and SEC compliant, inflating token sales figures, and making false claims about owning real estate in multiple countries.
Resistance to Change
Konanykhin believes that the SEC’s actions are driven by internal resistance to the changing regulatory climate. He points to staff holdovers from previous administrations as the driving force behind the agency’s pursuit of Unicoin.
“This is being driven by rogue officials left over from the previous administration who are trying to cover themselves by bullying us into a false admission of guilt,” Konanykhin stated.
Looking Ahead
Unicoin has requested a meeting with the Crypto Task Force but has yet to receive a response. The company remains steadfast in its decision to fight the SEC’s allegations in court.
Stay tuned as this legal battle unfolds in the evolving landscape of crypto regulation.