The leader of the SEC is featured at an event hosted by a cryptocurrency company in conflict with the agency.

SEC Chairman Paul Atkins is a prominent speaker at a policy summit supported by Unicoin, whose CEO asserts that the agency leader is being misled by his team.

Unicoin trucks are seen in Washington, promoting the message that "The War on Crypto is NOT Over." (courtesy of Unicoin)

What to know:

• Unicoin has accused the SEC of conducting a campaign against it, yet the company has also taken the lead as the primary sponsor for a Washington policy summit featuring the SEC chair as a keynote speaker.
• Unicoin’s CEO informed CoinDesk that he believes SEC Chairman Paul Atkins has been deceived by enforcement “henchmen” from the previous administration who assisted former SEC Chair Gary Gensler in legally targeting crypto enterprises.

U.S. Securities and Exchange Commission Chairman Atkins is a key speaker at the Digital Chamber’s DC Blockchain Summit next month, while Unicoin serves as the event’s chief sponsor and is embroiled in a legal dispute with the agency, alleging that the SEC’s chairman is being misled into continuing a historical conflict against crypto.

The CEO of Unicoin, the summit’s “platinum” sponsor, stated that his company is restricted from communicating with the SEC’s officials due to the ongoing legal proceedings against the crypto platform. In May of last year, the SEC filed a lawsuit against the company and its executives, including CEO Alexander Konanykhin, alleging they raised $100 million for tokens that were not backed by real estate as claimed.

Konanykhin asserted that the legal battle is being pursued by rogue enforcers from the agency (the “henchmen” of former SEC Chair Gary Gensler) who have misled current SEC Chairman Paul Atkins. (While the case may have originated during Gensler’s leadership, the subsequent lawsuit was initiated last year under then-Acting Chair Mark Uyeda.)

"We are barred from discussing matters with Atkins or other commissioners, leaving them unaware that they have been deceived by ‘dirty cops,’ holdovers from Gensler’s War on Crypto," Konanykhin stated in a communication to CoinDesk.

Although Unicoin executives cannot engage with Atkins, the company is financially supporting the event where Atkins and Commissioner Hester Peirce are the first two speakers featured on the summit’s website, alongside Konanykhin.

When inquired about the intersection of Unicoin and its agency rival at the forthcoming summit, the organizers provided a statement, noting, "Companies participate in the Digital Chamber’s DC Summit to educate and foster connections."

An SEC representative declined to provide comments regarding the situation.

Konanykhin’s firm has additionally attempted to inform the SEC through a campaign involving trucks driving around downtown Washington, displaying messages that included the statement, "The War on Crypto is NOT over."

The CEO has been navigating a complex situation with his pointed criticism of the SEC. He commended Atkins for "steadily mending the harm done to the crypto industry by his predecessor," but he contended that the agency’s enforcement team is undermining Atkins by continuing Gensler’s legal conflict with the digital assets sector, despite the SEC dismissing or postponing other major crypto enforcement actions initiated under Gensler.

Moreover, the current securities fraud allegations against Unicoin were made last year when Republican Commissioner Uyeda was serving as the acting chairman. The lawsuit was sanctioned by a commission that comprised two Republicans and a Democrat, with no dissenting opinions expressed. However, Konanykhin claims that the enforcement attorneys facilitated the approval, arguing that "rejecting a staff recommendation is the exception rather than the norm."

The policy summit, among the most notable annual crypto events in Washington, features a code of conduct that promotes "a safe and welcoming environment that encourages open dialogue and the free expression of ideas." Although Konanykhin may wish to inform Atkins that his enforcement team "crassly fabricated ludicrous accusations against Unicoin and its executives," the legal restrictions prevent him from engaging in that open dialogue.