The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Alexandre Konanykhin, the founder of the crypto project Unicoin, along with two former top executives, accusing them of orchestrating a massive securities fraud that netted approximately $110 million from over 5,000 investors. The case has drawn international attention not only for the staggering sums involved but also because Konanykhin previously gained notoriety for placing a $1 million bounty on Russian President Vladimir Putin in early 2022.
The SEC Allegations: Fictitious Assets and a Billion-Dollar Gap
According to the SEC complaint filed on May 23, 2025, in the U.S. District Court for the Southern District of New York, Konanykhin and his team began selling Unicoin tokens in 2022 as so-called 'rights certificates.' They marketed the tokens as being backed by 'billions of dollars in real estate and equity interests in pre-IPO companies,' promising to pay dividends to token holders. However, the SEC investigation found that the actual value of the underlying real estate assets was minuscule compared to the claims. Furthermore, the company told investors it had raised $3 billion from token sales, but the real figure was closer to just $110 million, the regulator alleges.
'We allege that Unicoin and its executives exploited thousands of investors with fictitious promises that its tokens, when issued, would be backed by real-world assets including an international portfolio of valuable real estate holdings,' said Mark Cave, Associate Director at the SEC. 'But as we allege, the real estate assets were worth a mere fraction of what the company claimed.' The SEC also pointed out that Unicoin aggressively promoted its tokens through television ads, social media, taxi cabs, and airports, and falsely claimed to have registered with the SEC.
A Colorful Backstory: From KGB-Era Oligarch to Asylum Seeker
Alexandre Konanykhin, 58, is a former Russian banking oligarch who rose to prominence in the KGB era. By age 25, he had amassed a $300 million fortune and gained a coveted spot in former President Boris Yeltsin's inner circle. In a dramatic turn of events, Konanykhin claimed he was kidnapped by the KGB while on a business trip in Budapest, Hungary, in 1992. He managed to escape to the United States, where he filed for asylum with his wife. However, he was jailed twice for violating U.S. immigration laws before finally winning a long legal battle to remain in the country. After rebuilding his life, he launched several startups, including 'Unicorn Hunters,' a Shark Tank-style reality TV series featuring Apple co-founder Steve Wozniak, former U.S. Treasurer Rosa Rios, and former Biden senior policy advisor Moe Vela. The show's 'Circle of Money' would stress-test startups and invest in them, with audience members allowed to invest alongside. It was within this ecosystem that Unicoin was born in 2022, designed to own equity in the companies featured on the show.
The Putin Bounty: A High-Profile Political Stunt
On February 27, 2022, just three days after Russia invaded Ukraine, Konanykhin posted on Facebook: 'Wanted dead or alive, Vladmir Putin, for mass murder.' He added, 'I promise to pay $1,000,000 to the officer(s) who, complying with their constitutional duty, arrest(s) Putin as a war criminal under Russian and international laws.' The bounty has never been claimed, but it made Konanykhin a headline-grabbing figure and likely drew regulatory scrutiny to his crypto venture.
SEC Action and Response from the Defendants
In addition to Konanykhin, the SEC named former Unicoin president and chairwoman Silvina Moschini, and former chief investment officer Alex Dominguez as defendants. All three are charged with violating federal securities laws, including anti-fraud provisions and registration requirements. The SEC seeks permanent injunctions, disgorgement of ill-gotten gains, and civil penalties. Konanykhin responded on X (formerly Twitter): 'The SEC’s allegations are blatantly false. We intend to prove in court that they constitute yet another case of gross abuse of power. We will fight for our vision, for our community, and for the legacy of transparency we are building... We will not back down.' As the legal proceedings unfold, the fate of the Unicoin project and its investors' funds remains uncertain. The case underscores the ongoing challenges in regulating the crypto industry and the SEC's commitment to cracking down on fraudulent schemes.