The U.S. Securities and Change Fee sued crypto firm Unicoin and three executives on Tuesday evening on fraud prices, saying the corporate raised over $100 million for tokens that weren’t really backed by the actual property its executives claimed.

The SEC sued Unicoin, CEO Alexander Konanykhin, former board chair Maria Moschini, senior vice chairman and common counsel Richard Devlin and former chief funding officer and investor relations officer Alejandro Dominguez on securities regulation violations,

Amongst its allegations, the SEC mentioned Unicoin by no means really owned the actual property properties it instructed traders it had acquired, and that these properties’ values have been inflated.

“For example, between September 2023 and January 2024, the Promoting Defendants announced acquisitions of properties in Argentina, Thailand, Antigua, and the Bahamas, purportedly with appraised values totaling more than of $1.4 billion; in fact, the majority of those transactions never closed and the actual combined value of the four properties was no more than $300 million,” the criticism mentioned.

The defendants additionally “overstated the Company’s sales” of its rights certificates, suggesting in social media posts and to traders that it had raised much more funds than it really had, the SEC alleged. Whereas Unicoin claimed it had made $3 billion in gross sales by June 2024, it really by no means offered greater than $110 million in its rights certificates, based on the criticism.

Furthermore, Unicoin marketed its rights certificates, together with by promising outsized returns of as much as 9 million %, the SEC alleged, pointing to advertising and marketing efforts on taxi cabs, ferries, “office building elevator screens,” digital billboards, coasters, tv applications, information web sites and public wi-fi kiosks.

“Additional examples of the Promoting Defendants’ statements include: (a) social media and website posts that touted potential returns of 9,000,000% based on bitcoin’s 9,000,000% growth in the past 10 years and told investors to ‘take advantage of the early days of Unicoin and get them today,’ highlighting that ‘Bitcoin experienced a tremendous rise in value, transforming early adopters into millionaires, and even billionaires,’” the submitting mentioned.

Learn extra: Unicoin CEO: Why Are We Nonetheless Underneath the SEC’s Gun?

Unicoin obtained a Wells discover from the SEC final December, informing the corporate that the regulator — then beneath the management of former Chair Gary Gensler — supposed to file securities fraud prices. Final month, Konanykhin despatched a letter to Unicoin’s shareholders, informing them that the corporate had rebuffed the SEC’s try and settle the fees, rejecting what he described as an “ultimatum” to attend a settlement negotiation assembly by April 18.

“We declined to show up,” Konanykhin instructed CoinDesk in an April interview, including that the SEC had made sure pre-meeting calls for he deemed “unacceptable” and claiming that the SEC’s probe had brought on “multi-billion-dollar damages” to the corporate.

Learn extra: Unicoin CEO Reject’s SEC’s Try and Settle Enforcement Probe

Neither Konanykhin nor a spokesperson for Unicoin responded to CoinDesk’s request for remark by press time. In a press launch shared earlier this 12 months in response to a Wall Road Journal article, a spokesperson mentioned, “Unicoin, the only fully U.S.-registered, U.S.-regulated, U.S.-audited, and U.S.-publicly reporting cryptocurrency company, has consistently complied with all regulations.”

In accordance with courtroom paperwork, the SEC is looking for disgorgement and civil penalties.