Hi Zapier,

Thank you for your interest in Unicoin!

By committing fraud, a rogue SEC official has inflicted multi-billion-dollar damages on the thousands of investors of Unicoin.

Such a statement would normally be met with an understandable scepticism: people tend to trust the government.

We’ve all met honest and hard-working civil servants, including in law enforcement. But, under Gary Gensler, the SEC has developed a remarkably different reputation. Its War on Crypto was so unconstitutional that 18 states sued the SEC for its abuse of power. It has been proven in court that the SEC engaged in gross abuse of power in waging this unconstitutional war.

Unicoin became the last cryptocurrency company similarly attacked by the SEC in the final months of Gensler’s rule. Through fraud and gross abuse of power, his henchmen tried to destroy Unicoin and penalize its management for daring to launch a fully compliant cryptocurrency company in the USA, in defiance of their anti-crypto stance.

Most of you are familiar with many aspects of the SEC’s persecution of Unicoin. We promptly and voluntarily disclosed their SEC’s “Wells Notice” and uploaded our detailed response to it. I discussed this persecution at our Shareholder Meetings and in my updates. News media published my interviews on this subject. But I still receive questions from our investors who find it bizarre that Unicoin, the most compliant cryptocurrency company in the United States, remains the only cryptocurrency company still persecuted by the SEC.

This update contains my opinions about the reasons, status, and impact of the SEC’s assault on Unicoin.

1. Why it all started.

Many people do not realize how consequential crypto and Unicoin are for the SEC.

The decision to attack Unicoin was likely made to protect the U.S. dollar’s dominance as a de facto international currency. U.S. government benefits tremendously from the dollar’s dominance. Rosie Rios, our past Director, printed over a trillion dollars of U.S. banknotes, with her signature.

Biden Administration’s reluctance to let cryptocurrencies erode the dollar’s dominance was understandable, but it was also short-sighted. Money evolves. People used to use seashells as an earlier form of Money. Then it was gold, checks, “paper”, “plastic”, wire transfers, and payment apps. People carry little cash nowadays; they tend to pay by scanning their smartwatch or smartphone or by credit/debit cards. And now Digital Money is moving from its original Single Ledger technology to more secure and efficient crypto technology. Dominance in the Money of the Future is of enormous political significance, and by nearly destroying the crypto industry in the United States, Gary Gensler inflicted enormous long-term damage to the economic interests of the country.

He undoubtedly saw Unicoin as so consequential that he ordered a full-scale attack on Unicoin after he had already announced his resignation and despite the President-elect having announced the end of the notorious War on Crypto.

In his last salvo, he did not bother to attack any of the thousands of cryptocurrencies that flagrantly disregarded U.S. securities laws. Instead, he targeted the only cryptocurrency company in the USA that was

U.S.-registered
U.S.-based
U.S.-audited
U.S. publicly reporting
U.S. regulations compliant
on track to become U.S.-publicly traded.

To Chairman Gensler, allowing Unicoin to go public would mean his defeat in his War on Crypto.

A year ago, we started a massive advertising campaign there in preparation for going public on the NYSE and listing Unicoin on multiple crypto exchanges. Our logo was on thousands of taxi cabs, billboards, buses, Uber cars, boats, newspapers and magazines, TV, and other media. I guess that seeing our logo everywhere in New York City, Chairman Gensler called his henchmen, yelled at them and unleashed them on us.

But I may be wrong. Maybe it was not Gensler. Maybe it was his deputy or some other SEC official. Maybe they were protecting the interests of Big Banks and not the government. It’s not that important, why they chose to wage the unconstitutional War on Crypto; I’m simply sharing my opinions on the likely causes.

2. Important notes.

The new SEC is unwinding the War on Crypto.

Our fight is not with the Commission but with the rogue official who remained there from Gary Gensler’s days. His actions do not coincide with the stated objectives of the new Commissioners, but he may still cause extensive damage as he’s proven to be willing to concoct false charges and abuse his power.

The opinions stated here are my own; for official Unicoin reporting, see our SEC filings.

3. How it started.

By 2024, we had already passed two SEC investigations with flying colors.

Those were exhaustive, lengthy investigations, but neither felt like a persecution.

I felt that a government agency was simply checking if we were complying with all the applicable regulations. In both cases, the SEC requested almost all our documentation and and communications, deposed me and some other executives and, finding no violations, wished us the best luck in our business.

As a side note, it’s rare for the SEC not to find any violation during their investigations. The fact that we passed two investigations with no violations found speaks volumes about our legal and financial staff and the quality of their work.

The latest “investigation” felt different from the very beginning. It was deliberately disruptive.

Subpoenas were sent not only to our staff but also to the outside lawyers, accountants, auditors, bankers, news reporters, and brokers. The “investigators”, led by Brad Ney, Assistant Director of the Division of Enforcement, were clearly trying to disrupt as many relationships as they could.

Just like during the first two investigations, they must have found no violations in our work. Otherwise, they would not have to resort to crudely fabricating charges that are ridiculous on their face.

4. How do we know Brad Ney has committed fraud?

Every person is presumed innocent until found guilty by the court. My response below is not a court judgement but solely some observations, whose veracity you may easily establish yourself.

Fraud is “willful misrepresentation of material facts for personal benefit”. Mr. Nay clearly misrepresented the SEC’s “airdrops are legal” policy to falsely accuse us of violations of the Securities Act. His personal benefit was the career advancement during the days of Gary Gensler’s unconstitutional War on Crypto.

Specifically, he stated that by giving away 100 free unicoins as a promotion, we violated laws because “gifting is the same as sales and may only be done to millionaires (a/k/a accredited investors).”

Not only does his “gifting is selling” claim contradict common sense, logic and the dictionary definition of words, it also contradicts the official SEC position that they do NOT have such a position.

Hundreds of crypto companies have conducted airdrops without any SEC objections. Even President Trump’s $Trump coin was available via an airdrop. (Interestingly, Mr. Ney chose not to charge President Trump for his airdrop.)

If Mr. Ney found any real violation in our work, he would not have to resort to such ridiculous charges.

You can review his other claims and our responses in our public SEC filing. They include such “gems” as charging for using the words “assets-backed” and “regulations-compliant.” The former was used in its primary dictionary definition (we do have assets that support Unicoin), and the second was verified by two exhausting SEC investigations.

Now he’s on the quest to penalize me for appealing to the President and legislators for a review of his abuse of power. His fraudulent actions have inflicted multi-billion-dollar damage to Unicoin shareholders and coin-holders, and I will vigorously protect their interests.

5. The damage caused by Mr. Ney’s abuse of power.

By committing fraud, Mr. Nay inflicted multi-billion-dollar damage on our investors. We would likely be a $10B+ publicly traded company by now if the SEC had not blocked our ICO, stock exchange listing, and fundraising.

By the time of Mr. Ney’s interference, we had laid solid groundwork for going public:

We clearly articulated our business concept
Developed a high-quality brand that has been seen by millions of people
Raised over $90M in cash since incorporation
Closed over $500M in Buy Now, Pay Later Agreements
Closed over $2.5B of “Real Estate for unicoins” deals
Completed our coin and signed Agreements with crypto exchanges
Identified companies for a reverse merger
Filed the S-1 application for going public
Developed an internationally acclaimed business show

Becoming the first publicly traded cryptocurrency company in the USA would likely result in a huge “market premium,” especially with U.S. policies shifting from aggressively anti-crypto to enthusiastically pro-crypto.

Our “Made in the USA” concept provided for a unique market fit with the new U.S. Administration’s policies. No other cryptocurrency is U.S.-audited and publicly reported like Unicoin. Instead of acting on the very favorable market opportunities and generating huge ROI for our investors, we were forced into a standstill.

6. What is the Standstill?

Last summer, Mr. Ney demanded that we promise not to continue business or that he’d escalate his actions against Unicoin and its management team. I recognized that I had no power to stop Gary Gensler’s War on Crypto. So I became yet another crypto entrepreneur pushed out of the country by Gary Gensler.

I informed our investors about my plans to move our operations to Crypto Valley in Switzerland and yielded to Mr. Neys’ demands by agreeing not to do fundraising, advertising, IPO, ICO, or “any other major transaction.”

After that, Mr. Ney seemingly lost interest in us.

And then U.S. voters spoke. They elected Donald Trump, a pro-crypto President who promised

to end the War on Crypto
to fire Gary Gensler right on the Inauguration Day
to turn America into the Crypto Capital of the World.

Accordingly, I asked our attorneys to send Mr. Ney a two-week notice that we will resume operations in the United States.

Mr. Ney retaliated with the Wells Notice based on crudely fabricated charges.

7. Why does our case remain outstanding?

News media reported that Gary Gensler Quietly Sets Aggressive Crypto Crackdown in Motion Before Leaving. It appears that Mr. Ney is one of Gensler’s moles.

It has also become “personal” for him. Mr. Nay recently indicated that he’s aware of my efforts to bring the attention of the President, his Administration, and legislators to his “investigation” and that he does not like it at all. His ongoing persecution of Unicoin may be mostly vindictive in nature by now.

There’s also a clear career benefit to Mr. Nay in forcing us into some kind of settlement: chalking up a win on his anti-crypto scoreboard instead of having to explain to his bosses why he’s wasted millions of dollars of taxpayers’ money on trying to destroy the only publicly reporting and audited cryptocurrency company in the USA.

8. What are we doing about it?

I’ve been asking the Administration, legislators, oversight agencies, and the news media to review our case and put an end to the gross abuse of power committed in the name of the ignominious War on Crypto.

In response, I’ve heard many assurances that such a War goes against the current U.S. policies. I was promised that our case will be closely watched. I was advised to wait until Paul Atkins is sworn in as the new Chairman of the SEC and appoints new officials who would review the legacy of Gensler’s anti-crypto crusade.

I retained government relations experts who can make sure that this matter will get all the oversight it deserves.

I retained lawyers who are capable of suing the SEC, if it comes to it.

Please note that the SEC is NOT suing us.

Wells Notice is merely a notice of an enforcement official that he may present to the Commissioners a recommendation to commence a lawsuit against somebody. It’s very harmful nonetheless as it dissuates many people and companies from doing business with us.

It’s doubtful that the pro-crypto Commissioners would be eager to continue the anti-crypto fight of the former Chairman. If the matter does go to court, we will have 2-3 years of showing its absurdity to the judge, the jury, the Administration, legislators and the media.

9. YOU CAN HELP!

Corrupt officials thrive in darkness.

We, on the contrary, want as much scrutiny of this case as possible.

We seek scrutiny by news media, the Department of Justice, other government agencies, and congressional committees.

Please help Unicoin by sharing my LinkedIn post and my X post onthe subject with your subscribers, reporters, and legislators.

10. What’s next?

It’s not the first time I’ve had to overcome similar challenges.

I have won all my cases against the U.S. government so far. It does not make me cocky, solely confident that I’m the right person to fight for the interests of thousands of our shareholders and investors.

The ongoing persecution is a serious risk factor, but I intend to prevail and succeed.

I’m confident that any independent trier of fact will find his charges to be crudely fabricated and that Mr. Ney’s investigation may result in another court finding of gross abuse of power.

Therefore, I recently publicly rejected Mr. Ney’s ultimatum to negotiate the settlement by April 18th, as yielding to his bullying would be a huge disservice to our investors:

With very best wishes,

Alex Konanykhin
CEO, Unicoin Inc.
Linkedin.com/in/konanykhin
Konanykhin.com
Unicoin.com
1 World Trade Center
85th Floor
New York, NY 10007

P.S.: My updates focus on our journey towards becoming a publicly-traded company and on our efforts to turn our Unicoin into a major cryptocurrency. These updates are not intended to serve as financial advice or to replace our official reports filed with the SEC. Please note that I cannot possibly answer all the questions myself, so your response to this message may be processed by members of our Investor Relations team. My past updates can be found at u.site/updates

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