Unicoin has rebuffed the U.S. Securities and Change Fee’s (SEC) try to barter a settlement settlement to shut an ongoing probe into the Miami-based crypto firm, its CEO Alex Konanykhin revealed in a Tuesday letter to traders.
In his letter, Konanykhin mentioned Unicoin was given an “ultimatum” by the SEC to attend a settlement negotiation assembly final week, on April 18.
“We declined to point out up,” Konanykhin advised CoinDesk, including that the SEC had made calls for forward of the assembly that he discovered “unacceptable.” He declined to share specifics, telling CoinDesk that the communication between Unicoin’s legal professionals and the SEC was confidential.
Unicoin acquired a Wells discover — a kind of official heads-up from the SEC that it intends to file an enforcement motion towards the recipient — in December, shortly earlier than former Chair Gary Gensler stepped down, alleging violations associated to fraud, misleading practices, and the provide and sale of unregistered securities. No official enforcement motion has but been filed.
Since President Donald Trump took workplace, the SEC has reversed its once-aggressive stance towards crypto regulation, backing off from lots of its open investigations into crypto firms, together with blockchain gaming agency Immutable and non-fungible token (NFT) market OpenSea, and even a few of its ongoing litigation, together with towards Coinbase and Cumberland DRW.
Different SEC enforcement circumstances towards crypto firms, together with its circumstances towards Binance and Tron, have been paused whereas the events try to barter a settlement. The company not too long ago reached a settlement settlement with Nova Labs, the father or mother firm behind the Helium blockchain, that noticed Nova Labs pay a $200,000 effective to settle civil securities fraud costs, and the SEC dropped its claims that Helium (HNT) and different associated tokens had been securities.
In his letter to traders, Konanykhin claimed that the SEC’s probe has brought on “multi-billion-dollar injury” to the corporate and its traders.
“We’d possible be a $10B+ publicly traded firm by now if the SEC had not blocked our ICO, inventory trade itemizing and fundraising,” Konanykhin wrote, including that the SEC had prevented Unicoin from performing on the “very favorable market alternatives.”
“We had been compelled right into a standstill,” Konanykhin wrote.
The SEC didn’t reply to a request for remark.
