Crypto investment platform Unicoin has recently fought back against the Securities and Exchange Commission’s fraud lawsuit, claiming that the agency has twisted its regulatory statements to create a case against them. After three months of silence, Unicoin finally responded to the allegations made by the SEC, stating that the lawsuit should be dismissed due to the misrepresentation of their communications and financial projections.
Unicoin argued that the SEC had taken snippets of their communications out of context, portrayed routine financial projections as fraudulent, and disregarded the company’s warnings about the risks involved. They also criticized the SEC for distorting their disclosures in SEC filings and using them as evidence of deception.
In May, the SEC filed a lawsuit against Unicoin, CEO Alex Konanykhin, board member Silvina Moschini, and former investment chief Alex Dominguez, accusing them of raising $100 million by deceiving investors about certificates that supposedly conveyed rights to receive Unicoin tokens and stock.
Unicoin maintained that the SEC’s claims lacked substantial evidence and that securities fraud required a higher standard of proof. They argued that the SEC’s lawsuit was based on circumstantial evidence, semantics, and mischaracterizations of statements taken out of context.
The SEC alleged that Unicoin misled investors by falsely claiming that real-world assets worth billions of dollars would back their upcoming tokens and rights certificates. The regulator contended that the actual value of the assets was significantly lower than what Unicoin had claimed, and the company had misrepresented its financial position.
In response, Unicoin refuted the SEC’s allegations, stating that the statements about asset backing were taken out of context. They clarified that they had never claimed that their tokens would be fully collateralized investments and emphasized that the tokens had not been created yet.
Unicoin also highlighted that the SEC’s lawsuit had hindered their ability to mint tokens and back them with assets. They argued that the SEC was holding them accountable for not creating tokens fully collateralized by real-world assets, despite the ongoing process of closing real estate transactions that had been disclosed to investors.
In their filing, Unicoin requested the court to dismiss the SEC’s lawsuit with prejudice, preventing the agency from re-filing the complaint. The company emphasized the need for clarity and fairness in regulatory actions, especially in the ever-evolving crypto industry.
Overall, Unicoin’s response to the SEC’s allegations showcases their commitment to transparency and compliance with regulations, while also challenging the agency’s interpretation of their communications and financial projections. As the legal battle continues, it remains to be seen how the court will rule on this contentious issue in the crypto investment space.