- SEC takes action against Unicoin for alleged fraud and unregistered securities amid increased crypto scrutiny.
- As Gary Gensler nears resignation, his tough enforcement stance on crypto companies continues.
- Unicoin fights SEC’s claims and defends its token amid an investigation and planned ICO block.
Crypto investment firm Unicoin received a Wells Notice from the SEC. This signals possible legal action over claims of fraud, deceptive practices, and the sale of unregistered securities.
The SEC’s Wells Notice is an official warning that it may sue Unicoin. Unicoin CEO Alex Konanykhin said the company has been under scrutiny from the SEC’s crypto legal division, which issued an order in May.
These investigations center on Unicoin’s main product, which includes billions of dollars in real estate. Konanykhin denies the SEC’s claims, calling them politically motivated and “nonsense.”
Unicoin’s Response and Legal Strategy
The SEC’s focus on fraud-related charges set this case apart from others involving crypto companies, such as Coinbase, where fraud allegations were not central. Konanykhin claimed that the SEC intends to block Unicoin’s planned Initial Coin Offering (ICO).
Despite the investigations, Unicoin says its token is a security and has reported to the SEC for five years, though it has not registered it. Unicoin must respond by December 24th and faces a complex legal situation.
Read also: SEC Chair Watch: Trump to Name Gensler’s Replacement December 4
Gensler’s Tough Stance on Crypto Enforcement
SEC Chairman Gary Gensler has taken a hard line on the crypto industry during his term. After FTX collapsed in November 2022, Gensler became more vocal, calling the crypto sector a “Wild West” of scams.
In response to Gensler’s policies, the crypto industry has joined forces to elect more crypto-friendly politicians, including those who supported President Donald Trump.
SEC Ramps Up Crypto Regulation as Gensler’s Term Ends
As SEC Chairman Gary Gensler gets ready to leave office in January 2025, the agency is increasing its crypto regulation actions. This includes the Wells Notice to Unicoin.
While the SEC has engaged in a number of legal actions against major crypto firms, Unicoin’s case stands out due to its alleged fraud-related violations, a matter that was not included in previous high-profile lawsuits.
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