Unicoin Says SEC Distorted Filings in $100M Fraud Case

Unicoin, a crypto investment platform, claims that the U.S. Securities and Exchange Commission (SEC) has distorted filings in the $100 million lawsuit. The platform says that the SEC has distorted its regulatory statements to build a case against it. The firm claims the regulatory body mischaracterized routine business statements as evidence of fraud and twisted its own disclosures.

Unicoin Accuses SEC of Misfiling

In a motion filed Wednesday in a New York federal court, Unicoin urged the judge to dismiss the case with prejudice, claiming that the SEC cherry-picked excerpts from company communications and regulatory filings to build a misleading narrative.

“The SEC plucks snippets of communications and distorts their meaning and context; treats routine financial projection and optimism as fraud; and ignores Unicoin’s sober warnings about risk,” the company said in its filing. It added that the regulator “improperly recasts” Unicoin’s own disclosures as proof of deception.

The SEC sued Unicoin, its CEO Alex Konanykhin, board member Silvina Moschini, and former investment chief Alex Dominguez in May, alleging the group misled investors about rights certificates tied to Unicoin’s forthcoming token and equity. The regulator said the company falsely claimed billions of dollars in real estate and equity stakes in pre-IPO firms would back the assets, when in fact the holdings were worth far less.

The complaint further alleged that Unicoin misrepresented sales, advertising more than $3 billion worth of rights certificates when only $110 million had been sold, and that it misled investors by suggesting the products were SEC-registered.

Important Reads: SEC Chair Paul Atkins States ‘Very Few’ Crypto Tokens Are Securities

Unicoin dismissed the accusations as a “shotgun pleading” lacking evidence of motive or intent. The company argued that securities fraud requires an evidently false statement made knowingly and relied upon by investors, standards the SEC had not met.

“Where, as here, the very risks the SEC identifies were disclosed openly and repeatedly, those elements cannot be met,” Unicoin said.

The company stressed that its executives had not promised fully collateralized tokens. Instead, it argued that references to “asset-backed” were about the company’s broader portfolio, not the future tokens themselves, which have yet to be minted. According to Unicoin, the SEC was unfairly targeting forward-looking optimism as fraud.

The filing also accused the SEC of mixing pending real estate transactions with completed deals, exaggerating the gap between Unicoin’s disclosures and reality.

By seeking dismissal with prejudice, Unicoin aims to prevent the SEC from refiling the case. The lawsuit has already delayed the company’s plans to issue its tokens and back them with assets, Unicoin said, leaving the firm effectively punished before any wrongdoing has been proven.