Unicoin falsely claimed ownership of real estate properties in various countries, inflating their total value from over $1.4 billion to approximately $300 million, as most transactions never closed.

The SEC has charged Unicoin, Inc. and its executives with deceiving investors through exaggerated fundraising claims and false assurances about their crypto token.

This action reflects the SEC's ongoing scrutiny and enforcement efforts aimed at combating fraudulent activities within the cryptocurrency sector.

The lawsuit underscores the critical need for transparency and compliance with securities regulations in the cryptocurrency market.

Richard Devlin, Unicoin's general counsel, has settled with the SEC, indicating potential internal issues as litigation progresses.

The lawsuit names several key figures, including CEO Alexander Konanykhin, general counsel Richard Devlin, former CIO Alejandro Dominguez, and former board chair Maria Moschini.

The case is significant as it may influence the regulatory landscape for asset-backed tokens and ongoing discussions in Congress regarding cryptocurrency regulations.

Konanykhin has denied the allegations, labeling them as 'crudely fabricated' and expressing confidence in his defense.

Mark Cave, an associate director in the SEC's Division of Enforcement, stated that the claimed real estate assets were significantly overvalued and that many sales of rights certificates were fictitious.

Konanykhin is accused of selling nearly 38 million rights certificates, targeting investors in violation of company rules, which constitutes a breach of federal securities laws.

Unicoin's marketing strategies included aggressive campaigns featuring prominent figures and widespread advertisements, convincing over 5,000 investors to buy rights certificates.

Investors are advised to prioritize transparency and genuine utility when evaluating crypto projects to avoid scams and significant financial losses.