Earlier this week, the SEC sent a Wells Notice to Unicoin, a U.S. crypto investment firm. A Wells Notice is a letter from the agency informing that they plan to sue a person or the company.
The controversial head of the Securities and Exchange Commission, Gary Gensler, will leave his post in a month but is still gunning around for crypto before he goes.
According to Fortune, the Wells Notice states that the commission will charge Unicoin with fraud, misleading practices, and sales of unregistered securities, but it does not mention specific problems.
SEC’s crypto team sent subpoenas to Unicoin
In May, the commission’s crypto team sent subpoenas to the company. Unicoin CEO Alex Konanykhin described the subpoenas as related to Unicoin’s main product, a cryptocurrency backed by real assets, including billions of dollars in real estate.
Unicorn’s lawyers are working on a response due Dec 24, he added. He also shared a common sentiment in crypto land that a lot of Gensler’s enforcement actions are politically fueled. “I can only say one word: bulls–t, complete and utter bulls–t,” says Konanykhin.
It is to be noted that Wells Notice contains fraud charges against Unicoin that have not been seen in recent cases against major crypto companies like Coinbase. The Securities and Exchange Commission is blocking Unicoin because it doesn’t want it to have an ICO (initial coin offering), as per Konanykhin.
A spokesperson said that the commission “does not comment on the existence or nonexistence of a possible investigation.”
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