- Unicoin has filed a motion to dismiss its SEC lawsuit, calling the regulator’s case a “fabricated narrative.”
- The SEC alleges Unicoin and its CEO overstated the value of real estate assets to deceive investors.
- Unicoin’s CEO claims the lawsuit is a politically motivated attempt to block a potential NYSE listing
Digital asset company Unicoin is firing back at the U.S. Securities and Exchange Commission, asking a New York federal court to dismiss the agency’s lawsuit and accusing the regulator of building a “fabricated narrative” against it.
In its motion, Unicoin argues the SEC’s case is based on distorted interpretations and selectively chosen evidence.
What Is Unicoin Accusing the SEC of Doing?
Unicoin asserts that the SEC intentionally misrepresented its actions and regulatory filings. The firm claims the agency took routine financial projections out of context and ignored repeated risk disclosures made to investors.
According to the filing, the SEC “selectively used snippets from communications” to create a misleading picture of the company’s operations.
What Are the SEC’s Original Allegations?
In a May lawsuit, the SEC targeted Unicoin and three of its executives, accusing them of violating securities laws. According to the SEC, Unicoin and its top executives, including CEO Alex Konanykhin, overstated the value of real estate assets purportedly backing Unicoin tokens and rights certificates. The SEC specified that the firm overhyped the values of properties in countries such as Thailand and Argentina in a deliberate attempt to deceive unsuspecting customers.
Related: SEC Hits Unicoin, Top Leaders with Lawsuit Alleging $100M+ Crypto Fraud
The SEC further alleged in the filing that Unicoin falsified the scale of its real estate acquisitions and the value of its assets, accusing the firm of providing information that misled investors about the collateral backing its tokens. The Commission denied giving Unicoin approval to carry out its business, despite the company’s claims that its tokens and certificates were SEC-registered.
Is This Lawsuit Politically Motivated?
In the meantime, Unicoin’s CEO Alex Konanykhin believes the SEC’s enforcement actions are politically motivated. According to Konanykhin, the agency is using legal pressure to prevent a potential NYSE listing and undermine Unicoin’s presence in the market. The Unicoin executive noted that the Commission has scrutinized his firm for over two years without evidence of wrongdoing.
Related: SEC Targets Unicoin in Crackdown on Crypto as Gensler’s Resignation Nears
Meanwhile, Unicoin insists that the SEC based its allegation on circumstantial evidence and mischaracterized statements taken out of context, describing the charges in court as “fabricated narrative.”
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