Unicoin Fights Back Against SEC Lawsuit Over $100 Million Crypto Raise
Unicoin is firing back at the U.S. Securities and Exchange Commission (SEC), accusing the agency of twisting facts in its fraud lawsuit. The crypto investment platform, along with its CEO Alex Konanykhin and board members, is challenging the SEC’s claims that it misled investors in raising $100 million.
In a New York federal court filing on Wednesday, Unicoin called out the SEC for “distorting” its communications and turning simple financial projections and optimism into accusations of fraud. The company also slammed the SEC for taking “snippets” of disclosures out of context and using them to craft a misleading narrative.
“This case is based on a misinterpretation of routine disclosures and optimistic statements about the future,” Unicoin said. “The SEC twists our own filings to fabricate a story of deception.”
SEC’s Lawsuit Claims Misleading Statements Over Token Backing
The SEC’s lawsuit, filed in May, alleges that Unicoin and its executives misled investors by claiming its forthcoming token would be backed by billions in real-world assets like real estate and equity in pre-IPO companies. The agency says Unicoin’s representations were wildly inflated and not supported by actual value.
The SEC also accused the platform of falsely advertising $3 billion in rights certificates when the real amount raised was just $110 million and claimed these certificates and tokens were SEC-registered when they weren’t.
Unicoin Challenges SEC’s “Shotgun Pleading” and Seeks Dismissal
Unicoin fired back, claiming that the SEC’s case is a “shotgun pleading” built on weak, circumstantial evidence and false interpretations of statements made by the company. It argued that the SEC’s claims are based on the idea that it failed to create fully collateralized tokens, but it pointed out that those tokens hadn’t even been minted yet.
“Fraud requires more than just mischaracterizations. It needs proof of a false statement made with intent to deceive,” Unicoin said. “The risks the SEC complains about were clearly disclosed, so these claims simply don’t hold up.”
Unicoin Requests Court Dismissal with Prejudice
Unicoin is asking the court to dismiss the SEC’s lawsuit with prejudice, meaning the case would be permanently closed and not subject to re-filing. The company argues that the SEC’s actions have already hampered its ability to create and back its tokens with real-world assets, making the legal battle even more damaging.
Anastasiia G
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