Unicoin Rejects SEC Settlement Talks Amid Ongoing Crypto Probe

Miami-based crypto firm Unicoin has declined the U.S. Securities and Exchange Commission’s (SEC) proposal to negotiate a settlement over an ongoing investigation, according to CEO Alex Konanykhin. In a letter sent Tuesday to investors, Konanykhin revealed that Unicoin was issued an ultimatum to attend a settlement meeting on April 18 but refused due to what he described as “unacceptable” demands from the SEC. Specific details were withheld due to confidentiality agreements between legal teams.

Unicoin received a Wells notice in December, signaling the SEC’s intent to pursue enforcement action for alleged fraud, deceptive practices, and the unregistered sale of securities. The notice was issued shortly before the resignation of former SEC Chair Gary Gensler.

Despite this notice, the SEC has not formally filed charges. Konanykhin claims the agency’s actions have caused significant financial harm, estimating that Unicoin’s valuation could have exceeded $10 billion had its initial coin offering, stock listing, and capital-raising efforts not been blocked. He stated that the investigation forced the company into a prolonged standstill, preventing them from capitalizing on favorable market conditions.

Under the Trump administration, the SEC has shifted away from its earlier aggressive approach to crypto enforcement, pausing or backing off several investigations, including those involving Coinbase, Immutable, and OpenSea. In contrast, it recently reached a $200,000 settlement with Nova Labs over civil securities charges related to the Helium blockchain.

The SEC did not respond to a request for comment. The outcome of Unicoin’s standoff with the agency remains uncertain, highlighting ongoing tensions between regulators and the crypto industry as it seeks greater regulatory clarity.