Investors Beware of Andrei Khovratov Crypto Scams

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Scammer Andrei Khovratov has entered the American market and is looking to dupe unsuspecting investors to buy his worthless tokens via an STO. He is believed to have raised over $124 million, mostly in Asia and New Zealand. For those who are not about Khovratov, he likes to present himself as a successful business mogul who teaches people how to create wealth. He runs his scams under various companies, which are rebranded once people become aware of his con before moving to different locations.

A good example of this was 2019 when one of his companies SWIG International LTD had to change its name after investors in New Zealand raised issues to authorities about its operations. Investors received messages in their personal accounts that notified them the name was changed to New Economic Evolution of the World (NEEW). They were supposed to abandon the last name or risk getting their accounts blocked without a chance of getting them restored.

Andrei Khovratov claims to offer investors access to a global investments pool where the money raised by selling tokens is used to invest in various segments of top economies. But, there is no mention of which segments exactly the company puts the money on in all websites associated with the company. His company sought to ride on the cryptocurrency buzz and introduced a utility token CryptoUnit, which they claimed was based on the blockchain. Then the company announced plans to offer the token as an STO, but since 2019 it has never been launched.
Surprisingly the token has been sold within various markets using clone websites even though it breaches securities laws.

Khovratov Holds No Licenses

Khovratov owns a personal website where he claims to hold no licenses from regulators to run a security token offering. Yet, his company has been involved in the fraudulent sale of CRU tokens since 2019. This is a clear red flag, and investors need to understand that they are not protected by getting involved with this project.

The only way you can join the project is through an invitation from an existing member. Therefore, the project runs on an MLM structure where members that recruit new members are rewarded within the downline. You will receive 150 CRU tokens by accepting an invitation and registering an account. These accounts don’t have to be verified, which is a clear red flag for a platform handling user funds. This means you can register as many accounts as you like using fake names and still get the same rewards.

On the NEEW website, you will realize the platform deals with financial courses that can only be accessed using CRU tokens. In total, there are around six, with each course more expensive than the previous one and promising to enlighten the visitor more about creating wealth instantly. Like all fraudulent MLM projects, a lot of money raised from users is put in marketing campaigns and company events where the new targets are invited to see how they stand a chance to improve their lives by joining the project.

MLM Stats Are Alarming

They are hyped with motivational quotes and fake testimonies that lure them into joining the project before they are sent out to recruit more individuals since they stand to gain for anyone who joins through their downline. Projects based on MLM structure rely on trust. That’s why you will be sent to close relatives and friends,’ people who already trust and will be more than willing to join your “business.” However, the stats on MLM are not pleasant at all, 99% of all participants will lose money, and you risk losing close relationships if they get swindled through your introduction.

There are a few things you need to be aware of about Khovratov and his scam projects. The tokens offered don’t have any value. You can’t access them from a legitimate exchange; therefore, it’s hard to get rid of them if you need to recoup your money. The tokens’ supply and control is unknown, which is strange for a project running on the blockchain where transparency is vital. There is no mention of which segments the company invests user money in, making it hard to track the portfolio growth. By interacting with the website, you don’t see any value the Khovratov project offers since it’s hard to see how a global investments pool is linked with educational courses.

Like all scammers, Khovratov runs a simple scam that is easy to see through if you can reason and do a bit of research. Other companies associated with him include SWIG International LTD., GENIUS OF WEALTH LTD., ARTEAM CONSULTANCY LIMITED, ACADEMY OF PRIVATE INVESTMENTS LTD, UK SWTU LTD, BAZALTINVEST LTD, and Crowd West Capital.

About the author:

Christopher Fowler is an independent researcher of the crypto industry. I participated in creating WhitePapers for the biggest blockchain projects. I also believe it is my duty to investigate crimes in the crypto niche.