The U.S. Securities and Exchange Commission (SEC) has filed charges against Unicoin, Inc., along with three of its executives in New York City for allegedly defrauding investors of over $100 million. The charges stem from misleading sales practices that inflated the company’s valuation, leading to investor losses. The SEC alleges the company claimed to have sold $3 billion worth of crypto assets, but only raised approximately $110 million during its operations between February 2022 and the time of the accusations. SEC investigators point to the executives—CEO Alex Konanykhin, ex-President Silvina Moschini, and ex-CIO Alex Dominguez—who allegedly fabricated false information about these assets’ stability and profitability to entice over 5,000 investors into purchasing rights certificates. The SEC has warned that investors face potential losses if they haven’t already taken precautions to protect themselves from this alleged fraud. Unicoin’s tokens are said to be asset-backed but lacked proper substantiation, further fueling investor distrust. This case underscores the need for more stringent regulatory measures in the cryptocurrency industry and follows similar patterns seen in previous crypto security cases, where overstated assets were used to mislead investors into buying into unregistered offerings. These legal actions often lead to increased scrutiny of the cryptocurrency market and potential regulatory reforms.