Unicoin CEO Dismisses SEC’s Efforts to Resolve Enforcement Investigation

Unicoin has declined the U.S. Securities and Exchange Commission’s (SEC) proposal for a settlement agreement regarding an ongoing investigation into the Miami-based crypto company, as stated by CEO Alex Konanykhin in a letter to investors on Tuesday. In his correspondence, Konanykhin mentioned that the SEC had issued an “ultimatum” for a settlement negotiation meeting last week, specifically on April 18. “We declined to show up,” Konanykhin informed CoinDesk, noting that the SEC had presented demands in advance of the meeting that he deemed “unacceptable.” He refrained from disclosing details, citing the confidentiality of the discussions between Unicoin’s legal team and the SEC.

Unicoin received a Wells notice in December, indicating that the SEC was planning to initiate enforcement action against the company for alleged violations involving fraud, deceptive practices, and the offer and sale of unregistered securities, shortly before the resignation of former Chair Gary Gensler. No formal enforcement action has been initiated as of yet.

Since the beginning of Donald Trump’s presidency, the SEC has shifted from its previously aggressive approach toward crypto regulation, reducing many of its active investigations into crypto firms, including blockchain gaming company Immutable and the NFT marketplace OpenSea, along with some ongoing litigations against platforms like Coinbase and Cumberland DRW. Current enforcement actions against various crypto companies, such as those involving Binance and Tron, have been paused as settlement negotiations are underway. The SEC recently reached a settlement with Nova Labs, the parent company of the Helium blockchain, which resulted in a $200,000 fine to resolve civil securities fraud claims, while also dismissing allegations that Helium (HNT) and related tokens were securities.

In his letter to investors, Konanykhin asserted that the SEC’s investigation has inflicted “multi-billion-dollar damage” to both the company and its stakeholders. “We would likely be a $10B+ publicly traded company by now if the SEC had not obstructed our ICO, stock exchange listing, and fundraising efforts,” he stated, emphasizing that the SEC’s interventions hindered Unicoin from pursuing significant market opportunities. “We were forced into a standstill,” Konanykhin added. The SEC did not provide a comment in response to the situation.