In mid-October 2020, a Russian-backed blockchain gambling game project called Web3 Game announced a major fundraising round for its blockchain-based online gambling platform. The project raised over $1.6 million from investors across the world, including some in the U.S. However, in January 2021, it was revealed that the entire project was a scam orchestrated by the project’s founder, Alexander Kravtsov, and his partner Stanislav Davydov, who is also known as Yegor Degtev.
The scheme involved Kravtsov and Davydov deceiving investors by employing actors who pretended to be experts and spokespeople for the project, while also staging fake events and interviews. The two also created a website associated with the project, which was used to promote the platform to potential investors.
According to reports, Kravtsov and Davydov have since disappeared with the funds raised in the crypto-currency scam, and the investors have been unable to get their money back. As the FBI is now investigating the case, many investors are wondering whether or not they will ever recoup their losses.
At this point it is unclear whether Kravtsov and Davydov will face criminal charges for their alleged cryptocurrency fraud. However, the case serves as an important reminder of the need for investors to be vigilant and do their due diligence when investing in crypto-currencies or any other type of financial asset.