Swapnex Review: Russian Boris CEO crypto Ponzi scheme
Swapnex provides no information on its website about who owns or runs the company.
Swapnex’s website domain (“swapnex.io”), was privately registered back in December 2020.
The company itself appears to have launched on or around August 2021.
In an attempt to appear legitimate, Swapnex provides Australian incorporation details for “Swapnex PTY LTD”. A corresponding corporate address in NSW, Australia is also provided.
One of the businesses operating from this address is a virtual office address merchant.
For the purpose of MLM due-diligence, basic incorporation in any jurisdiction is meaningless of for the purpose of MLM due-diligence. This is primarily due to the lack of verification of submitted data.
Swapnex’s official YouTube channel was created on August 2nd, 2021. The channel features marketing videos with cast actors.
In an October 30th 2021 video, an unnamed “product director” appears in a typical rented office setup:
In a second video uploaded on February 6th 2022, Swapnex names its Product Director as Marcus Huber;
“Marcus Huber” is in fact Rupert Godman, a UK citizen living in Russia for two decades.
Godman is fluent in French, Spanish, German and Russian. As per an interview Sam Gerrans, circa 2012 Godman was
in real estate and teaches business English. He is also writing a novel and plays drums in a band.
On March 20th, Godman marked a recent Swapnex acting gig with an Instagram post:
My last role in Moscow playing a spivvy cryptocurrency dealer in a corporate video.
I remain open to opportunities in the UK.
I believe the video Godman refers to is the February 2022 Swapnex marketing video cited above.
Swapnex’s official FaceBook page is managed from the Ukraine.
From this we surmise “Marcus Huber” is a Boris CEO. Who exactly is running Swapnex is unclear but it’s very obviously the usual eastern-European scammers.
As always, if an MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.
Swapnex’s Products
Swapnex has no retailable products or services.
Affiliates are only able to market Swapnex affiliate membership itself.
Swapnex’s Compensation Plan
Swapnex affiliates invest cryptocurrency on the promise of a passive return.
- Start – $200 (locked for 30 to 90 days)
- Personal – $500 (locked for 120 days)
- Professional – $1500 (locked for 180 or 360 days)
Note that while the above amounts are quoted in USD, Swapnex only solicits investment in cryptocurrency.
The MLM side of Swapnex pays on cryptocurrency invested by recruited affiliates.
Referral Commissions
Swapnex pays referral commissions via a unilevel compensation structure.
A unilevel compensation structure places an affiliate at the top of a unilevel team, with every personally recruited affiliate placed directly under them (level 1):
If any level 1 affiliates recruit new affiliates, they are placed on level 2 of the original affiliate’s unilevel team.
If any level 2 affiliates recruit new affiliates, they are placed on level 3 and so on and so forth down a theoretical infinite number of levels.
Swapnex caps payable unilevel team levels at five.
Referral commissions are paid as a percentage of cryptocurrency invested across these five levels as follows:
- level 1 (personally recruited affiliates) – 10%
- level 2 – 2%
- level 3 – 1%
- levels 4 and 5 – 0.5%
Representative qualified Swapnex affiliates receive “higher commissions and bonuses”.
- level 1 – 20%
- level 2 – 10%
- level 3 – 6%
- level 4 – 2%
- level 5 – 1%
Specific Representative qualification criteria is not provided.
Monthly Bonus
The Monthly Bonus is calculated on “total profit” paid to personally recruited affiliates.
The Monthly Bonus starts at $10. Swapnex does not provide complete Monthly Bonus details.
Leadership Bonus
The Leadership Bonus is a monthly bonus paid on downline investment milestones.
- generate $1000 in downline investment and receive $10
- generate $2000 in downline investment and receive $20
- generate $5000 in downline investment and receive $50
- generate $10,000 in downline investment and receive $100
- generate $50,000 in downline investment and receive $500
- generate $500,000 in downline investment and receive $5000
Joining Swapnex
Swapnex affiliate membership is free.
Full participation in the attached income opportunity requires investment.
Swapnex solicits investment in bitcoin, tether, ethereum, litecoin and dogecoin.
Swapnex Conclusion
Swapnex is a simple Boris CEO Ponzi scheme.
The marketing ruse of choice is the cliche trading bot:
Let Artificial Intelligence work for you! Just choose a currency pair, enter a sum for trading and watch the bot making profits for you!
Our AI-based solutions automatically monitor prices on different exchanges and choose the most suitable time for creating orders.
This is of course baloney. Like any Ponzi scheme, all Swapnex does is recycle invested funds to pay ROI withdrawal requests.
As with all MLM Ponzi schemes, once affiliate recruitment dries up, so too will new investment.
This will starve Swapnex of ROI revenue, eventually prompting a collapse.
The math behind Ponzi schemes guarantees that when they collapse, the majority of participants lose money.
At time of publication Alexa ranks top sources of traffic to Swapnex’s website as Azerbaijan (14%), Italy (10%) and Vietnam (6%).
Update 10th May 2022 – Shortly after this review was published Swapnex deleted its Boris CEO YouTube videos.
I didn’t realize because I didn’t link to any of them.
At time of this update Swapnex has deleted all YouTube videos up to September 2021.
Rupert Godman also appears aware of his association with a Ponzi scheme. Since publication of this review he’s marked his Instagram account as private.
Update 16th May 2022 – Swapnex has collapsed.
Update 20th May 2022 – Swapnex has completed its behind the scenes exit-scam.
The Ponzi scheme has advised investors its website will be pulled offline shortly.
Great article. Thank you for the information.
The Blockchain Centre in Sydney is not at this address. It’s located at Level 1, 23 O’Connell St, Sydney NSW 2000. And 2-26 Park Street is the Citigroup Building.
There are no offices on level 1 as Swapnex claims. That is the concierge and retail areas.
And they are NOT licensed with ASIC as is being indicated by some.
I think they are claiming to be because they need to be LICENSED to trade, a business needs a physical address, so they most likely made up a fake address to come across as LICENSED.
Russians have a weak grasp of securities law. You need to be registered with financial regulators in every jurisdiction you solicit investment in.
Picking a random country with garbage regulation doesn’t cover you globally.
To be fair after this many Boris CEO Ponzis the scammers likely know this. They’re counting on people they’re scamming to not.
Only a inocent child didn’t know that this is a huge pyramid. all “arbitrages” are not happening for real. dashboard is 100% fake.
All very interesting, except how do you explain random Swapnex arbitrage trades that are being made are able to be verified on the Blockchain? (Ozedit: derails removed)
I don’t. They’ve got nothing to do with Swapnex’s withdrawal funds.
Random transactions on dUh BlOcKcHaIn isn’t a substitute for registering with financial regulators and filing audited financial reports.
Disagree … if blockchain transactions can be proven to exist, then at least they are doing what is advertised.
Lets face it, almost everything in the crypto world is the wild wild west and unregulated.
The entire industry is speculative, most scam companies would not even bother to trade as advertised, they would just run a scam until the music stops.
Thanks for your review of Swapnex.
As part of doing our due diligence, we ordered some of the company’s registration documents from ASIC, and below is the listed Director of Swapnex company:
Please, can you let us know if this registration information are fake, if yes, how come ASIC registered it?
Once again, thank you for your reviews.
Also, do you have any reviews on COTP?
@Michael
Swapnex represents it pays withdrawals with external revenue, derived via trading.
Random transactions on the blockchain do not prove this.
The only way to prove this is registering with financial regulators and filing periodic audited reports. This is not optional, it’s a legal requirement for which there is no substitute.
Whether the rest of the crypto space is full of scammers (it is), is neither here nor there.
@Sunny
Anything filed with ASIC is fake. ASIC don’t verify information submitted to them upon submission.
They might look into it a few years from now and deregister a company. But by then the Ponzi scheme and scammers running it are long gone.
What would legitimize ASIC registration is periodic filing of audited financial reports. You’ll never find that with the Russian Ponzis that register there.
That they have no ties to Australia and register there just so they can put a certificate on their website should be enough of a red flag in and of itself.
Yes. Search bar is on the top right of every page.
Thanks for all those info. I have found out similar details as the 1st comment above.
More info is below:
The address on the website states:
Yes there is a Blockchain Centre a Sidney but it is located in Connelly street, well far from Park Street (1.2 KM or 0.75 miles).
Due to how their financial nature they need an AFS licence to operate. Please check here who needs this type of licence here asic.gov.au/for-finance-professionals/afs-licensees/do-you-need-an-afs-licence/
I have purchased the Current & Historical Company extract from ASIC showing the director name:
You’re welcome 🙂
It is possible that this is a ponzi scheme, but I am in the 10,000 auto trade plan which is locked for 180 days.
I am able to withdraw my profits and have already been pulled out more than my initial investment and I’ve only been at it for 28 days.
Also, the crypto prices they quote match the live prices I see on the 3 crypto platforms I have trading accounts with.
One never knows, but if you can recoup your initial investment and withdraw it to a private wallet in 24 days, it’s pretty low risk.
I’m still withdrawing, but I’m going to reinvest half the gains in another 180 day plan.
One certainly does know. MLM + securities fraud = Ponzi scheme.
Whether you think investment fraud is low risk or not is neither here nor there. Math is math and the majority of participants in Ponzi schemes lose money.
I agree, no way to know if they are really trading arbitrage unless we had the blockchain confirmations as proof.
But as of today I already have my investment back in 3 weeks. Risk is low based on that … also they are improving servers and adding new features and arbitrage is something that is real.
I think everything in crypto should be viewed as risky no matter what is claimed.
But you can’t just run scared just because something might be a scam or you will never make any money.
Whether they’re trading or not is irrelevant. The Ponzi question is whether external revenue is being used to pay withdrawals.
Not registered and providing legally required audited financial reports? External revenue isn’t being used to pay withdrawals.
Ponzi scheme confirmed.
Whether you’ve stolen money through Swapnex is neither here nor there.
*steal any money.
And seeing as Swapnex is a confirmed Ponzi scheme, trying to justify your fraud with “might be a scam” doesn’t apply. Ditto trying to diminish fraud through risk assesment.
Ponzi math is Ponzi math. The majority of people who invest in Ponzi schemes lose money to early scammers such as yourself.
The other thing I’ve noticed is my return per automatic trade seems to have gone up significantly since the increased market volatility.
This would make sense because arbitrage opportunities across trading platforms increase with increased volatility.
I think this is further evidence that they are making the trades they say they are. Maybe not, but arbitrage is real and I haven’t seen any evidence that clearly shows this is a ponzi scheme.
If they are doing what they say, the long term effect will be that money pours in and the funds they have to arbitrage will increase.
This will lead to more consistent prices across different trading platforms but it will also mean less arbitrage opportunity and profit over time.
If it’s real, it’s good for crypto but the profits from swapnex with slowly diminish over time.
If there’s no registration with financial regulators and audited financial reports, they aren’t doing what they say they are (using trading revenue to pay returns).
Review updated to note Swapnex has deleted all of its Boris CEO videos.
Quick! Let’s pretend it didn’t happen…
Rupert Godman has also tried to cover his track by marking his social media private.
Dumbasses in Italy and Brazil don’t care. They’re still signing up in droves to lose money.
They are trading in P2P OTC market that can gain very high reward across the exchanges. Not scamming people money.
If you want to make representations about what Swapnex is doing with invested funds, proof of registration with financial regulators and audited financial reports.
No filings? Ponzi scheme and sorry for your loss.
I agree .. this reviewer is all about finding scams so it is likely that 100% of his articles on ANY company is a scam. (Ozedit: derails removed)
This is a “you” problem. Stop looking up Ponzi schemes and you’ll stop finding them.
now swapnex having widthdraw issues this morning so they sent out these messages below..ponzis falling like rain..haha.
Pretty funny a bitcoin crash is all it takes to wipe out Boris’ Ponzis.
Here’s to crypto crashing more often (tether next plz).
These stinky cockroaches are dropping like flies. These morons keep on joining these shady ass businesses and then bitch and complain when they get robbed.
They were never trading in the first place. They had a fake CEO and fake everything and once again fooled the desperate small dick energy Ponzi pimps who join a new biz every week.
These demonic demons pray on the souls of the idiots who want to get rich quick and keep stealing all their money.
This was a scam from day one and it ended because they owners got greedy and stole all your money.
Stay away from SwapNex and do not believe the withdrawals are going to be turned back on. Everything they told you since the first day was a LIE.
Calm your titties, the only way you can confirm a MLM is a MLM is whether or not the main source of income that is being payed out to users is derived mostly or solely from new people entering the scheme.
since you probably can’t prove it, its hard to say it is 100% a MLM like you are doing rn.
False. That’s how you’d confirm a pyramid scheme.
Confirming MLM is easy. MLM comp plan? MLM company.
The truth about companies like Swapnex, COTPS and various other passive income programs is not that all of them must be scams.
Why have all these companies suddenly restricted withdraws? (Ozedit: snip, see below)
nah. they just use new investors money to pay withdrawals. so they are ponzi schemes.
Because they’re Ponzi schemes. No need to pump out paragraphs and paragraphs of whacky conspiracy theories.
Sorry for your loss.
Swapnex have been transferring over 3M USDT out of their ERC20 address since 01st May of which 1.2M were transferred out after 11th May.
A handful of individual addresses have benefited most from this:
Swapnex ERC20 address on the blockhain (check it out on Etherscan):
0x8b8a4abc707f16da24b795e3e46ed22975a9d329
Recipients of funds:
0xc36b86fbb2c6ae3baf7e987ebd22ab6bc2a19137 -> 700,000 USDT in 2 days
0x75a51eb79a44d16081887fe5d4285886f9239e49 _> 300,000 USDT (18th May)
etc. etc.
update: they have now stopped taking any more orders, only the scam goes on (the same ERC20 address is still receving funds..)
So Swapnex’s withdrawals disabled, lights turned off but feel free to continue dumping money into our collapsed Ponzi.
That sound about right?
Yeah that’s it. Over the last 10 hours they have received 50k USDT, and that’s just the ERC20 chain, there’s also the TRC20/BEP20 chains which usually receive way more than that 🙂
This address received 750000 from the BEP20 payment address then moved 799000 through PancakeSwap.
bscscan.com/address/0x7e6da267e4503ffd227652514ad4733c1924ac18#tokentxns
Everything is written in Blockchain, so we can trace every wallet on swapnex and every transaction.
Founds were send or from exchanges of from private wallets, don’t forget everything is traced.
So let’s trace All transactions out of swapnex user wallets where they were transfered.
Personally I’d rather smash my nuts with a 50 lbs cactus, but have at it.