Unicoin’s CEO Requests SEC to Reevaluate Investigation
In a recent statement, Unicoin CEO Alex Konanykhin revealed his ongoing efforts to persuade the U.S. Securities and Exchange Commission (SEC) to cease its investigation into his cryptocurrency company. As of now, he has yet to receive a response from the regulatory body.
The Background: A Targeted Attack from the SEC
Unicoin’s troubles with the SEC began late last year when the agency, under the leadership of former Chair Gary Gensler, issued an official notice indicating plans to charge the firm with fraud, deceptive practices, and operating unregistered securities. This investigation was announced during the final days of President Joe Biden’s administration, just before the SEC transitioned to new leadership appointed by supporters of former President Donald Trump, who has been vocal about making the U.S. a hub for cryptocurrency.
Seeking Guidance and Accountability
In a letter addressed to the SEC’s new Crypto Task Force on March 17, Konanykhin expressed his concerns about what he perceives as an abuse of power by the agency. He requested the termination of the investigation and called for a review of the enforcement actions taken against Unicoin, alleging that the officials involved had exploited SEC authority for political reasons.
Despite the lack of feedback from the SEC, a spokesperson for Unicoin confirmed that the company is currently in the latter stages of the SEC review process. “We remain fully committed to compliance and transparency,” the spokesperson stated, emphasizing their ongoing efforts to secure the necessary approvals for their offerings.
Perceived Harassment and Relocation
Konanykhin believes that Unicoin has faced undue harassment from the SEC, particularly last year when the agency allegedly pressured the company to refrain from public offerings in the United States, leading him to relocate to Europe to continue business operations. His return to New York was motivated by the election of Trump and the promise of a more favorable environment for cryptocurrencies.
“We thought the war was over,” Konanykhin said, referring to their optimism about resuming operations. However, shortly after announcing their intent to move forward, the SEC indicated plans to pursue civil charges against Unicoin.
Controversy Over Marketing Strategies
One of the charges leveled against Unicoin involves accusations of violating securities laws through an airdrop, a marketing strategy commonly used in the cryptocurrency space. Konanykhin argues that such tactics are not unique to Unicoin and are widely utilized across the industry, including by high-profile figures in the U.S.
“It’s an embarrassment that the battle against crypto continues,” he remarked, suggesting that if the SEC persists in targeting Unicoin, it may leave many observers shocked by the agency’s actions.
The Vision Behind Unicoin
Unicoin was founded with the goal of providing a more transparent and reliable alternative to Bitcoin, which the company claims has yielded returns of 9 million percent over the past decade. Konanykhin noted that some analysts have speculated about the origins of Bitcoin, hinting at connections to Chinese intelligence, though the true creator remains unknown.
“I’m excited about the chance to help make America the global leader in cryptocurrency, as the president has promised, despite the ongoing challenges posed by the SEC,” he stated.
Looking Ahead: Plans for Going Public
As Unicoin navigates the complexities of regulatory scrutiny, Konanykhin affirmed that the company is actively preparing for an eventual public offering. Despite the current hurdles, he remains optimistic about the future of Unicoin and its mission within the crypto landscape.
