To Innovation - Breaking Politics, Economics, Crypto & IT News

learn more
Reporting from Watford, UK and LA, US since 1996
learn more

How Dmitry Shuval tries to destroy SGC, a promising blockchain project

Dmitry Shuval chose a cryptocurrency project Sudan Gold Coin as his next victim.

04.Mar.19 12:01 PM
By Abigail Richards
Photo VistaNews


How Dmitry Shuval tries to destroy SGC, a promising blockchain project
Dmitry Shuval, a self-named specialist in the field of inter-regional development, had previously already been noticed in scams and deceptions, in particular, the creation of a fictitious agency of interregional development, and also in the deception of a Ukrainian "Jewish orthodox organization". With his greedy and deceitful actions, Dmitry Shuval caused serious reputational damage both to employees and partners in the regional development agency - who were real politicians, and also to the entire Jewish community in Ukraine.
Realizing that he should no longer expect easy money in these areas of activity, he turned his attention to a new and rapidly developing field: cryptocurrency.

Dmitry Shuval chose a cryptocurrency project Sudan Gold Coin as his next victim. The idea of the project was the creation of an automated mining enterprise in Northern Sudan. The main feature of this enterprise was that each batch of mined minerals would be weighed on scales, connected to a united accounting system, to which the government of Sudan would also have the access. Thus, such an enterprise would not only be automated, but also transparent in its accounting. In addition, everyone would have the opportunity to purchase the minerals, mined by this company, with the cryptocurrency that was specially released for this, called "SGC". The development of the basic concept and the technical part of the project was carried out by a group of enthusiasts headed by a young entrepreneur, Dmitry Konoval. Although young enthusiasts managed not only to develop the basic structure of the project, but also to obtain official permission for its implementation from the Ministry of Minerals of Sudan (and also the Government of Sudan), the young team faced an extremely sensitive question: they need a specialist in the field of law, also foreign policy.

It should be clarified that the cryptocurrency market was expanding, and therefore many governments cautiously looked at the huge and uncountable amount of funds circling around in it every day. Because of this each and every developed country were constantly releasing new laws that were tightening the framework and clarifying the field of the development for such projects. Therefore, the young team urgently needed someone to help legitimize the SGC project and bring it to the international level. Dmitry Shuval decided to become this "someone" (of course, for his own purposes).

Next you can see the direct speech of the CEO and founder of Sudan Gold Coin project, Dmitry Konoval:

"I invited Dmitry Shuval to the Sudan Gold Coin project 11 months ago to help us legitimize the project (primarily based on US laws and major European financial centers such as Switzerland). After demonstrating his "contacts" in legal sphere in the US (which turned out to be fake) and requesting $ 50,000 for legal support from the United States, in April 2018, Dmitry Shuval was invited to become a financial partner, as well as an expert in jurisprudence and foreign political relations. After that the legal concept of the project was created. The idea was to start everything under the patronage of Switzerland with the further development of the Switzerland-Dubai-Sudan structure, where Dubai acted as an intermediary company. Dubai an UAE were chosen thanks to their long and successful history of cooperation with Sudan. Dmitry Shuval hired lawyers in Switzerland who confirmed the reality and the legitimacy of such a scheme. After that Dmitry Shuval was given the responsibility of negotiating and managing the processes with the Sudan and Switzerland, also his duties included monitoring of these processes and, of course, the timely financing of lawyers and hired employees in Sudan (some time later - also the payment of taxes for the Swiss company).

However, over time, it turned out that both lawyers and employees in Sudan began to receive their funds with a delay, and over another time, payments stopped altogether. In parallel with this, I (Dmitry Konoval) was engaged in negotiations with the persons interested in the project and was not aware of what was happening. As soon as anxious rumors began to arrive, I decided to arrange a full research in order to check the activity of Dmitry Shuval ... and I was simply stunned. Shuval began to simply withdraw money from the project, and using them for his own purposes, he said to lawyers and employees in Sudan that the project was going through hard times and he (Dmitry Shuval) had to finance the project from his own pockets, and therefore "delays are possible", although I (Dmitry Konoval) consistently issued the necessary funds for needed travels, visits, roadshows, crypto-meetings, as well as payment for all the necessary processes. That's the moment where Shuval got me: firstly, his skills in manipulation and lying are deserved to be given a credit, and secondly, due to the fact that my level of English was not as strong as that of Shuval, I initially entrusted legal processes and external relations to him, fully immersed in the search for finances in order to advance the development of the project.

As soon as the lie began to be uncovered, I became suspicious, and decided to begin massively interrogating all partners, lawyers in Switzerland, employees, and also document and record all the details and nuances, including conversations. And there was no limit to my disappointment - Dmitry Shuval not only used funds for other purposes, but also tried to legally re-register the project on himself without my knowledge. Fortunately, I was not the only one who felt - something is wrong, because of what his deception was noticed by many, as a result of which his swindle was revealed and conveyed to necessary people with all the necessary evidences.

So, what kind of scams were made by Dmitry Shuval as "a specialist in finances and external relations of the Sudan Gold Coin project" (I remind you that all the charges have the necessary evidence that we can privately provide to the needed representatives):
- Lack of employee benefits in Sudan. Back in the winter, Dmitry Shuval had to fly to Sudan to sign the final contracts with the government of the country that were related to the provision of a site for mining, and at the same time he should've made another payment for Sudanese employees. As a result, after the investigation, it turned out that instead of the required 10 days, Dmitry Shuval stayed in Sudan for only two days, after which he flew to Egypt (most likely on "vacation" at the expense of the project), of course, none of the staff received funds, but received only "promises to pay everything in the shortest possible time, because the project is going through dark times".

- Dmitry Shuval promised to help with legal support of the project in the United States, and even promised the Government of Sudan to help in developing relations between Sudan and the United States (although his proposal was rejected due to doubts about his competence).

- In addition, Shuval promised to involve his "partner" in the project - "a millionaire from San Francisco and an expert from Oracle - Thomas Varghese", who could help the project with local development, as well as with technical nuances. To find out more about the project, Thomas demanded his presence in Sudan, as well as at several crypto conferences. According to Dmitry Shuval, the project had to allocate funds for Thomas' travels, in addition, his work in the project also requires payment (which seems logic). After issuing the necessary finances, over time, Thomas was involved in the project, but the work went incredibly sluggish, and therefore many questions regarding Thomas' and his involved partners arose. However, I was not surprised when Mr. Varghese suddenly declared that he did not receive any funds for his flights and meetings from Dmitry Shuval, nor did he receive payment for work, and therefore the work "on pure enthusiasm" was extremely reluctant. Thus, Dmitry Shuval scammed not only a promising project, but also deceived his partners in the United States for his own benefit.

- While I (Dmitry Konoval) was looking for additional funds to finance the project, the Swiss company Netarc AG was created, its should become the financial “heart of the project”. To do that, we have involved an experienced team of Swiss lawyers, that had a huge and positive experience in the field of cryptocurrency legalization in Switzerland.

To expand the project's capabilities, we have bought new domains with larger capabilities: one for the project and another one - for Netarc AG company (the projects domain was bought with the Shuvals' card, on which the project money was credited). After disclosing the scam, Dmitry (as the one who bought the domain) decided to freeze the projects website, as a result of which we had to move to a new domain, but manage to secure the database, mail and all confidential data. After that, Shuval, by blackmailing, decided to intimidate the project team by hanging an empty picture on the frozen domain, where he, together with the Swiss lawyers and the director of the Netarc AG company, allegedly opened a legal dispute against me, the founder of the project. Naturally, there was no legal dispute and, moreover, the director of NetArc AG, as well as the lawyers were absolutely not aware of this message, and they've told me about that in a personal dialogue. As a result, the company NetArc AG is currently frozen at my request, as well as at the request of the director of this company.

- Another deception of Dmitry Shuval is a promise to bring interested investors into the project, after his visit to a large forum dedicated to blockchain and crypto technologies in Dubai. We have found and contacted these "investors", and as it turned out during our dialogue, they were really interested in supporting the project, but they demanded a legally supported partnership, which scared Dmitry Shuval and the conversation was quickly forgotten.

- The final point of the story were the articles on the Internet about him, his betrayal of the Jews in Ukraine and how he blackened the real politicians in our country.
Gathering all the facts together, re-checking all recorded conversations and documented checks and data, I declare that Dmitry Shuval, hiding behind his "US connections", calling himself in front of the Government of Sudan “an adviser to the presidential administration in Ukraine”, cheated the Sudan Gold Coin project and stole around 500.000 $ of the project budgets. In addition to this, he tried to fraudulently and for free to renew the project to himself, but was disclosed. Thus, he framed not only the reputation of the project, but also Sudan, framed his partners in the United States, as well as his partners in Ukraine. And all this - for his own benefit. Dmitry Shuval tried to destroy the project, which was started from scratch and developed thanks to motivated employees who initially worked practically "on the enthusiasm." And instead of bringing the project to the successful end, thus giving a start to a great concept, Shuval decided to simply rob it.”
All the necessary evidence of his actions have already been provided to the needed people, and all the rest should only draw their conclusions about such a person as Dmitry Shuval.

Back to the list

Related Information: