Unicoin CEO Charged with $110 Million Fraud by SEC, Once Offered $1 Million for Putin's Capture

New York — Alexandre Konanykhin, a Russian businessman and CEO of cryptocurrency company Unicoin, has been charged by the U.S. Securities and Exchange Commission (SEC) with securities fraud worth up to $110 million. The case has attracted particular attention not only because of its scale but also because of Konanykhin's controversial background, having publicly offered a $1 million reward to any Russian officer who captured President Vladimir Putin.

From 'Financial Prodigy' to the Center of Investigation
Konanykhin, 58, is no stranger to legal controversy. He was a post-Soviet banking tycoon who made hundreds of millions of dollars by the age of 25 and was a close associate of former Russian President Boris Yeltsin. However, he claimed to have been kidnapped by the KGB during a business trip to Hungary in 1992, and later fled to the United States to seek asylum.

He has since rebuilt his career in the United States, founding several startups, notably TransparentBusiness and the reality TV show “Unicorn Hunters,” which featured celebrities such as Steve Wozniak (co-founder of Apple) and Rosa Rios (former US Treasury Secretary). It was from this foundation that Unicoin was born — a cryptocurrency that was promoted as “backed by real assets and equity returns.”

Promises not fulfilled?
According to the SEC’s allegations, Unicoin and its management raised approximately $110 million from more than 5,000 investors by promoting that their tokens were “backed by billions of dollars in real estate and shares in companies about to go public.” However, the SEC said the real value of those assets was “a tiny fraction” of what was claimed.

“We allege that Unicoin and its leaders exploited investor confidence with false promises of guaranteed investments,” Mark Cave, the SEC’s deputy director of investigations, said in a press release. “In reality, much of the advertised value did not exist.”

The SEC also alleges that the company falsely claimed that it had registered its tokens with the agency, and launched a massive promotional campaign on social media, television, taxis, and even airports.

Rebuttal and political specter
Konanykhin has denied the allegations, calling them a “blatant abuse of power” and vowing to fight to the end. In a post on X (formerly Twitter), he wrote:

“We will not back down. We will fight for our vision, our community, and the transparent legacy we are building.”

Notably, Konanykhin made headlines in February 2022 when he offered a $1 million reward to any Russian officer who captured Vladimir Putin on charges of “war crimes” after Russia invaded Ukraine.

“I promise to pay $1,000,000 to any officer who fulfills his constitutional duty and arrests Putin,” Konanykhin wrote on February 27, 2022.

The reward was never received, but the move made him the center of global attention — and now, again, for a completely different reason.

Legal Encirclement
In addition to Konanykhin, the SEC also charged Silvina Moschini, former President of Unicoin, and Alex Dominguez, former Chief Investment Officer, with securities fraud related to the sale of tokens in the form of “rights certificates.” Authorities said investors were led to believe they were investing in a valuable asset, when in fact the project’s financial structure lacked transparency and was grossly overstated.

The case is currently before the Southern District of New York. If convicted, Konanykhin could face hefty fines and additional penalties from federal authorities.

Unicoin was once hailed as a game changer in the cryptocurrency space, with a mission to create a token with “real value” amid the volatile digital asset craze. But now, it is being branded by the US government as a symbol of fraud.

While the court has yet to make a final ruling, the case is a stark reminder to the investor community that, in the crypto world, not all that glitters is gold.