Michaela Alvez
The U.S. Securities and Exchange Commission (SEC) has issued a Wells Notice to Unicoin, a U.S.-based cryptocurrency investment firm, signaling potential enforcement action.
According to Fortune, the Wells Notice indicated that the commission intends to charge Unicoin with fraud, deceptive practices, and the sale of unregistered securities. It does not specify the exact issues involved. A Wells Notice is a formal letter from the SEC informing an individual or company that the agency intends to file a lawsuit against them.
In an interview, Unicoin CEO Alex Konanykhin revealed that the SEC had issued subpoenas to the company in May. The subpoenas were linked to Unicoin’s primary offering, a cryptocurrency supported by real-world assets, including what Konanykhin claimed to be billions of dollars in real estate holdings.
Konanykhin shared that Unicoin’s legal team is currently preparing a response, due by December 24. He also voiced a sentiment shared by many in the cryptocurrency industry, suggesting that SEC Chairman Gary Gensler’s aggressive enforcement actions are viewed by some as politically driven.
“I can only say one word: bulls–t,” Konanykhin said. “Complete and utter bulls–t.”
It’s important to note that the Wells Notice issued to Unicoin includes fraud charges, a significant distinction compared to recent cases against major crypto firms like Coinbase, which have not faced similar allegations.
Konanykhin believes the SEC is attempting to block Unicoin’s progress due to its opposition to the company’s plans for an initial coin offering (ICO).
Gensler Drops Last Minute Bombs Before Resignation
Gensler will step down from his position in January 2025. Despite his upcoming departure, the SEC chair continues to lead the agency’s aggressive stance on cryptocurrency regulation, a move that has drawn widespread criticism from the crypto community.
Earlier this month, in a bid to maintain the SEC’s strong enforcement efforts, Gensler quietly promoted three senior crypto-enforcement lawyers to key executive roles. The move was revealed by John Reed Stark, former Chief of the SEC’s Office of Internet Enforcement.
Stark described the promotions as “unprecedented,” adding that they signal the SEC’s commitment to continuing its crypto enforcement efforts without interruption, despite upcoming leadership changes.
In an effort to shift the SEC toward a more crypto-friendly regulatory approach, President-elect Donald Trump has nominated former SEC commissioner Paul Atkins to serve as the new SEC chair.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
