Following this announcement, the Securities and Exchange Commission alleges that Unicoin marketed rights certificates to the public through the use of extensive promotional efforts, including advertisements in major airports, on New York City taxies, and on television or social media.
In addition, Unicoin and its executives are also alleged to have convinced more than 5.000 investors to purchase rights certificates through the use of false and misleading statements that portrayed them as investments that are safe, stable, and profitable crypto assets. These included claims that Unicoin tokens underlying the rights certificates were `asset-backed` by USD of real estate and equity interests in pre-IPO firms (while Unicoin’s assets were never worth more than a small fraction of the overall amount), as well as claims that the firm sold more than USD 3 billion in rights certificate (when it raised no more than USD 110 million), and the rights certificates and Unicoin tokens were `SEC-registered` or `US-registered`, when they were not.
According to the official press release, Unicoin also violated the deferral securities laws through the process of engaging in unregistered provides and sales of rights certificates, as there were over 37.9 million of rights certificates offered and sold in order to deliver better pricing and target investors the company had prohibited from participating in the offering, to avoid jeopardizing its exemption to registration requirements, as alleged. The complaint also seeks permanent injunctive relief, as well as disgorgement of ill-gotten gains with prejudgment interest, and civil penalties against Unicoin and its executives.
The Securities and Exchange Commission also alleged that Unicoin and its executives exploited multiple investors with fictitious promises that its tokens, when issued, would be backed by secure and real-world assets, including an international portfolio of valuable real estate holdings. In addition, the complaint also includes violations of the antifraud provisions of the federal securities laws and violations of the registration provisions of the Securities Act of 1933.
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