Unicoin Co-Founder Seeks Removal from SEC’s Enforcement List
Unicoin co-founder Alex Konanykhin is eager to have his company removed from the SEC’s enforcement list as the regulatory body shifts its approach towards the crypto industry under the new Biden administration. In a recent op-ed for the Miami Herald, Konanykhin expressed his desire to follow in the footsteps of other crypto companies that have been released from SEC investigations and lawsuits.
The SEC’s move away from a strict “regulation by enforcement” strategy has resulted in the dismissal of cases against major players such as Coinbase, Binance, Ripple, and Kraken in recent weeks. Several other cases have either been dropped altogether or put on hold as the regulator adopts a more industry-friendly stance.
When the SEC initially set its sights on investigating and pursuing cases against crypto companies following the downfall of FTX, many companies faced allegations and threats of enforcement actions. Unicoin, although a late addition to the SEC’s radar, was targeted with an enforcement action late last year, signaling the persistence of then-Chairman Gary Gensler’s purported anti-crypto agenda.
Accusations of fraud, deceptive practices, and handling unregistered securities were levied against Konanykhin’s Miami-based firm by regulators. Despite vehemently denying these allegations as “complete and utter nonsense,” Unicoin was compelled to relocate its operations to Europe and commit to refraining from U.S. fundraising.
Konanykhin previously disclosed that Unicoin had generated $3.5 billion by selling Unicoin tokens through various agreements to approximately 70,000 investors. Unlike many other crypto firms embroiled in legal battles over unregistered securities offerings, Unicoin takes a different stance by asserting that its token is indeed a security.
Despite claiming to have publically reported to the SEC for over five years, Unicoin has not registered its token with the regulator, according to public records. Konanykhin emphasizes the company’s commitment to transparency by providing transaction records, audits, and financial reports, despite facing what he perceives as unjust scrutiny under the prior administration.
Unicoin gained attention when Apple co-founder Steve Wozniak endorsed its token launch in 2022. Wozniak, who served as a panelist on Unicorn Hunters, a television show that promoted Unicoin, expressed optimism about the project’s success based on tangible outcomes rather than mere promises.
In conclusion, Unicoin’s quest for exoneration from the SEC’s enforcement list reflects the evolving landscape of crypto regulation under the current administration. As the company navigates regulatory challenges and strives for transparency, its future trajectory remains intertwined with the shifting dynamics of the crypto industry.
This article has been edited by Sebastian Sinclair.