Unicoin co-founder and CEO Alex Konanykhin informed investors in a letter that the cryptocurrency firm has rejected an attempt by the SEC to negotiate terms for ending its investigation against the company. This was reported by CoinDesk.
He described the regulator’s proposal as an “ultimatum.”
“We refused to appear,” the entrepreneur confirmed in a comment to the publication.
According to him, the demands made by the SEC before the meeting were “unacceptable.” Konanykhin declined to disclose details, citing the confidential nature of the communication between the lawyers of both parties.
In December 2024, Unicoin received a Wells notice. This form is used by the SEC to officially warn the recipient that enforcement actions may be taken against them. The claims against the company included fraud, manipulative practices, and the offering and sale of unregistered securities.
Following Donald Trump’s inauguration as U.S. President, the Commission abandoned its aggressive policy of regulating the crypto industry through enforcement actions. The agency suspended or closed a number of investigations and legal proceedings against industry participants, including: Coinbase, Robinhood, Ripple, ConsenSys, Uniswap, Gemini, and others.
In an article for the Miami Herald in early April, the head of the Miami-based crypto company expressed confidence that Unicoin should be on this list. Konanykhin linked hopes for a settlement with the appointment of new SEC Chairman Paul Atkins.
In a letter to investors, the CEO of Unicoin stated that the Commission’s actions have caused “multi-billion dollar damage” to the firm and its investors.
“Most likely, we would now be a public company worth over $10 billion if the SEC had not blocked our ICO, stock exchange listing, and fundraising,” Konanykhin emphasized.
Earlier in April, the Commission held its second scheduled roundtable on crypto regulation with industry representatives.