According to @EleanorTerrett, the SEC has formally charged Unicoin and its executives, including CEO Alex Konanykhin and Silvina Moschini, for allegedly defrauding over 5,000 investors by making false claims that their Unicoin crypto token was backed by billions in real estate, when in reality only around $110 million was raised (source: @EleanorTerrett, May 21, 2025). This regulatory action is expected to significantly impact investor confidence in asset-backed token projects and could lead to increased scrutiny for similar crypto offerings, affecting trading volumes and risk assessments across the altcoin sector.

According to KookCapitalLLC, a concerning incident has emerged where an employee of a blockchain project allegedly launched a rug pull using the chain's intellectual property, developed a full stack for just $600, and subsequently boasted about the exploit while later portraying themselves as a victim. This event signals significant security and governance risks within blockchain projects, especially when insiders misuse proprietary assets, potentially undermining investor confidence and affecting the broader crypto market's sentiment, as cited by KookCapitalLLC on Twitter (May 18, 2025). Crypto traders should monitor this development closely, as it highlights the need for stricter internal controls and transparency to avoid similar reputational and market risks.