Despite Regulatory Pressure, These 3 Real Utility Altcoins Are Worth Buying

Despite regulatory pressure and controversy surrounding some new crypto projects, there’s no need to abandon crypto entirely.

The US Securities and Exchange Commission (SEC) has filed fraud charges against Unicoin and three of its senior executives for allegedly defrauding more than 5,000 investors with a cryptocurrency project that falsely claimed to be SEC-registered.

Unicoin, also known as Unicoin Group and Unicoin Technologies, is accused of raising over $100 million through the purported sale of “rights certificates” for unissued tokens. These certificates were allegedly falsely marketed as being registered with the SEC and convertible into U.S. tokens.

According to the SEC’s complaint, Unicoin’s certificates were touted as being backed by a portfolio of hard assets, such as real estate and precious metals, and promised high returns to investors. However, the SEC claims that Unicoin’s representations were false and that the project’s leaders used the funds for personal enrichment and to pay lavish expenses.

“As we continue to see a rise in technological innovation, we’re also seeing a rise in attempts to use that innovation to defraud investors,” said Michael S. Kaufman, regional director of the SEC’s New York office. “In this case, the SEC is shutting down a crypto project that flouted U.S. securities laws for years and misappropriated investors’ funds.”

Unicoin’s project was allegedly launched in 2014 by cryptocurrency entrepreneur Sean Tabib. According to the SEC, the project was shut down in 2024 following an investigation by the regulator.

The SEC’s complaint, filed in the U.S. District Court for the Southern District of New York, seeks permanent injunctions against Unicoin, its CEO Grant Supoich, Chief Operating Officer Ben Reichstein, and Chief Technology Officer Samuel Chaiotaki. The regulator is also seeking disgorgement of illegally obtained funds, plus interest, and civil monetary penalties.

“We are deeply disappointed that, despite the SEC's efforts to provide clear guidance to the crypto industry, some projects continue to operate outside the law,” said Charles Petillon, acting director of the SEC’s Division of Enforcement. “This case is a stark reminder that no project or executive is above the law, and we will hold violators accountable.”

The SEC’s lawsuit against Unicoin comes amid a broader crackdown by the regulator on cryptocurrency projects. In recent months, the SEC has sued several major cryptocurrency exchanges, including Binance and Coinbase (NASDAQ:COIN), and several projects for allegedly violating securities laws.

The regulator has also been actively engaged in rulemaking to bring cryptocurrency exchanges and projects into compliance with U.S. securities laws.

The SEC’s crackdown on crypto has been met with mixed reactions from industry insiders. Some experts believe that the regulator is finally taking necessary steps to protect investors from fraud and ensure that the crypto industry is operating transparently.

However, other experts argue that the SEC’s actions are overly broad and could stifle innovation in the crypto sector. They also note that the regulator has been slow to provide clear guidance to cryptocurrency projects on how to comply with U.S. securities laws.

Despite the regulatory pressure and controversy surrounding some new crypto projects, there’s no need to abandon crypto entirely. Some of the best altcoins to buy, like MIND of Pepe ($MIND), Best Wallet Token ($BEST), and Monero ($XMR), stand out with real and audited utility cases.

After a few projects allegedly went awry and several tokens reportedly turned out to be scams, it seems like the U.S. Securities and Exchange Commission (SEC) is finally stepping up to bring more accountability to the crypto sector.

Now, the SEC has filed fraud charges against Unicoin and three of its senior executives for allegedly defrauding more than 5,000 investors with a cryptocurrency project that falsely claimed to be SEC-registered.

According to the regulator’s complaint, Unicoin’s project was launched in 2014 and shut down in 2024 following an investigation by the SEC. In this period, the project is said to have raised over $100 million through the purported sale of “rights certificates” for unissued tokens.

These certificates were allegedly falsely marketed as being registered with the SEC and convertible into U.S. tokens. They were also touted as being backed by a portfolio of hard assets, such as real estate and precious metals, and promised high returns to investors.

Coupled with asset misrepresentation and insiders cashing out, it’s no wonder the SEC is pushing for the project to be permanently banned and pay steep fines.

But not all cryptocurrencies are built on fiction. In fact, the failure of projects like Unicoin only reinforces the value of actually good altcoins worth buying.

As the SEC tightens its grip, the future looks bright for tokens that are transparent, utility-driven, and compliant from the ground up, like $MIND, $BEST, and $XMR.