TronWeekly

Crypto World News

You are here: Home / Archives for Securities and Exchange Commission (SEC)

Securities and Exchange Commission (SEC)

SEC Slams America’s First Crypto Company in Explosive $100 Million Scam

by

  • The SEC accuses crypto startup Unicoin of misleading over 5,000 investors with false claims about asset backing and regulatory approval.
  • Unicoin allegedly claimed to have raised $3.3 billion and was backed by billions in assets, but only about $110 million was raised.
  • Key executives, including CEO Alex Konanykhin, face charges; General Counsel Richard Devlin agreed to a penalty without admitting guilt.

The U.S. Securities and Exchange Commission (SEC) has filed charges against crypto startup Unicoin and its top executives, alleging massive fraud involving the sale of fake rights certificates tied to its digital token. According to the SEC, the New York-based company misled thousands of investors by falsely promoting Unicoin tokens as backed by billions of dollars in real-world assets, including real estate and equity in pre-IPO companies.

In a complaint filed in the U.S. District Court for the Southern District of New York, the Securities and Exchange Commission accuses Unicoin of claiming to have raised more than $3.3 billion from investors. However, investigators say the actual amount was no more than $110 million. The agency also alleges that Unicoin falsely told the public that its tokens and rights certificates were registered with the SEC, a statement that regulators have categorically denied.

“As we allege, the real estate assets were worth a mere fraction of what the company claimed, and the majority of the company’s sales of rights certificates were illusory,” said Mark Cave, Associate Director of the SEC’s Division of Enforcement.

Screenshot 2

Source: Securities and Exchange Commission (SEC)

Unicoin Exposed in SEC Crypto Scam Charges

Unicoin used an aggressive multi-platform marketing campaign to promote its crypto investment scheme. Advertisements were placed in major U.S. airports, broadcast on television, shared on social media, and even displayed on thousands of New York City taxis. These promotional efforts gave the appearance of legitimacy, helping the company convince more than 5,000 retail investors to buy into the project.

The Securities and Exchange Commission says these tactics played a central role in the alleged scam, allowing Unicoin to present itself as a secure and innovative crypto project while hiding the lack of actual asset backing and regulatory approval.

The SEC has charged several key figures in the company with violating federal securities laws. Among those named are Alex Konanykhin, the CEO and chairman; Silvina Moschini, the former president and chairwoman; and Alex Dominguez, the former chief investment officer.

Additionally, Richard Devlin, Unicoin’s General Counsel, was charged with making misleading statements in private investor communications. Devlin has since agreed to a permanent injunction and will pay a $37,500 civil penalty without admitting or denying the charges.

SEC Targets Unicoin in Ongoing Crypto Crackdown

The Unicoin case is the latest in a series of crypto enforcement actions by the SEC, as regulators aim to crack down on unregistered securities offerings, fraudulent asset claims, and deceptive marketing in the digital asset space.

This case serves as a warning to investors about the growing number of crypto scams disguised as legitimate investment opportunities. The commission emphasized the importance of verifying whether tokens or offerings are properly registered and whether they are backed by real assets, as claimed.

As the lawsuit progresses, Unicoin could face significant financial penalties and regulatory restrictions. The outcome of this case may also shape future Securities and Exchange Commission policies on crypto advertising, investor protections, and the enforcement of securities laws in the decentralized finance (DeFi) sector.

Investors and industry watchers alike will be monitoring the case closely, as it underscores the urgent need for greater transparency and accountability in the cryptocurrency investment market.

Related | Solana (SOL) Weekly Review: Key Support Holds, But Volume Drops Raise Caution Flags

Ripple’s Battle Intensifies: SEC Appeals Court Decision

by

  • The SEC is appealing the ruling in the Ripple case, arguing it conflicts with Supreme Court precedent.  
  • Ripple’s legal team and CEO express frustration, calling the appeal irrational and misguided.  
  • Ripple claims the case has damaged the SEC’s credibility without benefiting investors.

The U.S. Securities and Exchange Commission (SEC) has appealed the decision made by the U.S. Second Circuit Court of Appeals regarding the high-profile Ripple case. The commission argues that the district court’s decision runs contrary to long-standing Supreme Court precedent and securities laws.

That tug-of-war between the SEC and Ripple has been ongoing, and it really seems that the recent move by the SEC is going to again challenge that interpretation of the court. Previously, a district court imposed a $125 million civil penalty on the company, way below the fine SEC had sought at $2 billion.

image 12 5

The SEC charged the company behind XRP, one of the influential players in cryptocurrency markets, for selling unregistered securities through its token. However, the company kept arguing its innocence, claiming that XRP is not a security and it has not violated any laws.

Ripple Legal Team Slams SEC Appeal

Ripple’s Chief Legal Officer, Stuart Alderoty, has taken to X in light of the SEC’s decision to file an appeal. Alderoty criticized the agency for continuing a fight that had already lost them so much credibility.

Alderoty emphasized that the court had already discarded any suggestion of recklessness on the company’s part and underlined that no fraud had been alleged, nor were there victims.

Alderoty went on to question the timing of the appeal filed by the SEC, considering the sudden resignation of the Enforcement Director at the agency right before the announcement. At that point, Ripple was considering filing a cross-appeal, with Alderoty hinting at the company’s readiness to face the SEC again in court.

Ripple CEO Criticizes SEC’s Actions

CEO Brad Garlinghouse also expressed frustration with the decision by the SEC, terming it irrational and a poor exercise of judgment. He said the SEC had not protected investors but had only harmed its reputation.

He repeated that the court had already ruled in the company’s favor on key issues, particularly with respect to the non-security status of the XRP. With the case now back in court, Ripple leadership seems very confident of its legal standing and ready to continue the fight.

Related Reading | Tom Emmer’s Crypto Vision: What Lies Ahead for 2025 U.S. Regulation

Ripple CEO Slams SEC, Vows 100% Fight for XRP

by

  • The SEC has filed an appeal contesting the decision that XRP’s programmatic sales are not securities.
  • Garlinghouse criticized the SEC for prolonging the legal battle, saying it has caused harm to investors.
  • Ripple remains confident that the court’s ruling on XRP’s non-security status will prevail.

Ripple CEO Brad Garlinghouse has expressed his frustration with the U.S. Securities and Exchange Commission’s (SEC) decision to continue its legal battle against the company. The SEC recently filed a notice of appeal, contesting a federal judge’s ruling from 2023 that favored the firm in key aspects of its case.

Screenshot 301
Source

On October 1, the SEC filed a notice of appeal to the Second Circuit, signaling its intent to challenge the court’s ruling in the ongoing case against Ripple. The appeal focuses on a 2023 decision by Judge Analisa Torres, which found that the firm’s programmatic sales of XRP were not securities transactions. However, the judge did rule that sales to institutional clients were securities, leading the SEC to appeal the part of the ruling related to programmatic sales.

The SEC’s appeal comes after the court rejected its previous request for an immediate appeal last year, following the judge’s final verdict in August. The final decision, considered a partial victory for both sides, set the stage for this latest legal maneuver.

Ripple CEO Reacts to SEC’s Stance

Reacting to the appeal, Garlinghouse expressed his disappointment, accusing the SEC of dragging the case unnecessarily. The Ripple CEO highlighted that the regulator’s actions have hurt U.S. investors and damaged its own credibility. According to Garlinghouse, the case has become a “losing battle” for the SEC, which continues to waste taxpayer money.

In Garlinghouse’s view, the court’s decision regarding XRP’s non-security status should stand as a victory for the industry. He emphasized that Ripple is prepared to continue the fight to protect this important ruling.

With the appeal now in motion, Ripple’s legal battle is far from over. However, Garlinghouse and his team remain optimistic that their victory will stand, benefiting not only Ripple but also the broader cryptocurrency ecosystem. The SEC has 70 days to file its appeal brief, prolonging the uncertainty for both Ripple and the crypto industry.