Unicoin co-founder urges SEC to drop probe amid regulatory shift

Alex Konanykhin, co-founder of Unicoin, is calling on the U.S. Securities and Exchange Commission (SEC) to end its investigation into his company, citing recent dismissals of enforcement actions against major crypto firms like Coinbase, Binance, Ripple (CRYPTO:XRP), and Kraken.

“We would like to be next,” stated Konanykhin in a Miami Herald op-ed, referencing the regulator’s evolving stance under the Trump administration.

The SEC’s shift from its previous "regulation by enforcement" approach has led to the termination or suspension of multiple high-profile cases.

This pivot follows years of aggressive scrutiny under former Chair Gary Gensler, who targeted crypto firms for alleged fraud and unregistered securities offerings.

Konanykhin claims the enforcement action against Unicoin was politically motivated, initiated during the final days of the Biden administration.

Unicoin has faced allegations of fraud and deceptive practices related to its $3.5 billion token sales.

Unlike other crypto firms that dispute their tokens’ classification as securities, Unicoin openly acknowledges its tokens as securities but has yet to register them with the SEC.

Konanykhin argues that his firm has maintained transparency by disclosing transaction records and audits despite what he calls "unwarranted scrutiny."

The regulatory environment under Trump has seen significant changes, including the dismissal of non-fraud cases and a focus on fostering industry collaboration.

The SEC’s Crypto Task Force aims to clarify rules around digital assets and streamline compliance processes.

However, critics warn that while federal enforcement actions may be easing, private lawsuits could fill the void.

Unicoin first gained attention in 2022 when Apple co-founder Steve Wozniak endorsed its token launch during an investment TV show.

Despite its challenges with U.S. regulators, Unicoin has moved operations to Europe and avoided U.S.-based fundraising.