SEC Files Lawsuit Against Unicoin for Fraud

As SEC Chairman Gary Gensler prepares to leave office in January 2025, he has intensified the SEC's enforcement actions against the cryptocurrency industry, recently issuing a Wells Notice to Unicoin for alleged fraud and selling unregistered securities. Unicoin, which claims to have sold $3.5 billion worth of tokens linked to real estate, has vehemently denied the SEC's allegations, labeling them as politically motivated. The Wells Notice serves as a formal warning that the SEC may sue Unicoin unless they satisfactorily respond by December 24. Gensler's tenure has been marked by a tough stance on crypto, heightening scrutiny following the collapse of FTX in 2022, which he described as a “Wild West” of scams. The situation reflects broader tensions within the crypto industry, which is rallying for more favorable regulations under the impending leadership of a new SEC chair.