The world of investing is a jungle that requires putting some measure of trust in another, or just doing your research before backing any ‘horse’. Thus, individuals like Andrei Khovratov, on seeing these opportunities to cash out, never hesitate, not even for a moment to grab them.
On the surface, Andrei Khovratov is that guy everyone runs to for financial guidance on investing wisely in assets considered a potential gold mine. He’s sleek, confident and has all the answers. Yet, there’s more to Andrei than meets the eye. Many only see the sleek business mogul with the exotic taste.
The CryptoUnit Project, A Conduit of Sorts
Andrei Khovratov’s scams aren’t anything new – set up company A to mislead persons, B, C, D to register using amount Z, then get persons B, C, D to invite persons, D, E, F to register, resulting in a vicious cycle. Rinse and Repeat! Of course, it’s the typical ponzi-scheme. But Andrei provides his with the perfect fodder for its continuous growth and nourishment – a disguise and the frequent changes in the company name.
The CryptoUnit Project is handled by Andrei Khovratov’s NEEW. To withstand the barge of enquires and litigations that accompany running ponzi-schemes, the company has taken the chameleon’s approach by changing the name of the company, an occurrence that has happened one too many times confirmed by the handful of company names tied to the same address doing the same thing, albeit a short-lived existence.
Ponzi Scheme? How Are People Falling For It?
As highlighted earlier, what Andrei Khovratov is doing isn’t something out of the ordinary. Yet, people still fall victims due to inadequate investigation before they commit their precious resources and ignoring the red flags. The signs are always there, most people just prefer to unsee them.
While Andrei Khovratov’s companies always use a UK address, their victims aren’t only English nationals. To guarantee a larger number of investors hoodwinked into participating in his ponzi-scheme, Andrei makes these registration portals available in multiple languages. This way, there is no drop in the number of potential cows heading to the slaughter.
One of the reasons why Andrei Khovratov’s scam has continued for years is his ability to tap into the greed of the average human. By offering supposedly mouthwatering bonuses towards potential victims, he gives some pseudo credence to his scam, deceiving these investors into parting with their resources.
Once in, many of his victims continue the scamming tradition to either recover their money or just flow with the tide.
The Input of Cryptocurrency
Due to strict regulations guiding fiat use, Andrei Khovratov turned his attention to cryptocurrency. The creation of the CRU tokens is supposed to allow his victims to make payment for their registration, courses, and consultancy without the scrutiny that accompanies fiat movements.
With most cryptocurrencies, including the CRU tokens being mostly untraceable to a person, Andrei Khovratov bypasses investigation. This explains his brief run-in with the law, especially in New Zealand that saw criminal charges being made, though it wasn’t fully pursued.
While genuine projects on the blockchain carry out an initial coin offering or similar events to source for funding for their projects, Andrei Khovratov’s Ponzi scheme sold the CRU tokens to unsuspecting investors looking for the next shiny things without any such media attention. And considering the phony nature of the websites these tokens are sold, it’s often a wonder how people fall for such.
The Tragic End
The unpleasantness of ponzi-schemes like those run by Andrei Khovratov is the bitter aftermath for new members. While others might have gotten a piece of the pile, new members bear the financial brunt of such a pyramid.
This explains why ponzi-schemes, such as those carried out by Andrei Khovratov, are frowned upon. Unfortunately, most people are never aware of the nature of these schemes as they are wrapped in the most exciting Greek covers, so it’s never easy telling, especially when veterans like Andrei Khovratov are at the center of such.
A Wake-up Call
There’s a need for investors to be mindful of such schemes, no matter the sort of packaging that accompanies them. Any investment promising outrageous amounts for a tiny investment or it just has the typical MLM pattern, should be scrutinized accordingly. Andrei Khovratov isn’t relenting on his schemes, investors shouldn’t rest on their oars either.