CrowdWiz.io is the brainchild of Ilan Tzroya (aka Tzorya) the founder of Tradologic, DTI Holdings, Krypton Capital and their derivatives I happened to invest into.
The child was born out of ICO hype that was at its peak at the end of 2017. Everyone was crazy about distributed ledgers, blockchain and crowd everything… ICOs were attracting tens and sometimes hundreds of millions raised in cryptocurrency.
Ilan, being the CEO of Krypton Capital at the time, put in charge of CrowdWiz Delzar Khalaf who left Tradologic some time ago, and was not planning to return. Neither Delzar nor the people around him could understand the idea behind CrowdWiz that Ilan Tzroya was trying to explain in his vague manner. I guess it didn’t take long for Delzar to understand that the only idea behind CrowdWiz was to collect as much money from crypto investors as possible and only then think of the idea. This could be the reason why Delzar rapidly left the project.
I met Delzar when I was first introduced to Tradologic back in 2013 or so, and he seemed like a good and honest person.
For some reason Ilan decided to make CrowdWiz.io the subsidiary of Tradologic, and not Krypton Capital – a holding that was meant for all crypto-related ventures. By the time CrowdWiz needed a separate registered company, Delzar has already left, and Ilan put in charge Micha Golod, who went from being CEO of Tradologic to being the face and “founder” of CrowdWiz.io.
The company was registered in Estonia, and Micha became the beneficial owner, the director of the company. He was introduced as founder of CrowdWiz on all the shows and meetings with investors.
ICO marketing takes a lot of resources, and funds. All the marketing for CrowdWiz.io was financed by Tradologic Solutions, half of the people involved in the project was also employees for Tradologic. The 2017 annual report of Tradologic to its shareholders, where my company (Oldypak) happened to be the biggest shareholder at the time showed that around $700,000 was spent by Tradologic for marketing of CrowdWiz.io.
After the end of the ICO, Micha Golod claimed that they raised more than $7m in funds. Wether or not this is true I can’t know for sure as I never had access to bank accounts, BUT I can tell with a high probability that this stated amount is exaggerated.
The crypto part of the funds raised was controlled by ICOadm.in – the subsidiary of Krypton Capital setup by Ilan Tzroya, but this part of the business was managed by me. Of many dozens of Ilan’s projects ICOadm.in was actually the only project managed by myself. CrowdWiz.io team simply had no expertise in blockchain nor in holding crypto funds. That’s why Micha only controlled the fiat investments, while ICOadm.in was responsible for keeping the multi-sigs with crypto currencies raised.
As far as crypto, the ICO raised the following amounts:
- ETH 1,922.9
- BTC 2.1458
- LTC 200
At its peak all the crypto funds held in CrowdWiz multi-sigs were worth around 2.5m USD.
On request of Micha Golod some of the crypto funds were spent on exchange listings, for example HitBTC listing. The good news is, the majority of the funds remain untouched in the multi-sig wallet.
All the Bitcoin and Litecoin holdings were spent entirely. While the Ethereum remains in the amount of ETH 1544 which is approximately 3/4 of the crypto funds raised.
The rest of the $7m raised (approx $4.5m) was supposedly raised by fiat. There was definitely some money raised by wires and credit cards, but I am sure its nowhere close to that amount. Some of the fiat investments I assume was spent by Micha and Ilan on development of actual product as promised by the project to investors. But it is a tiny fraction of the raised fiat.
As post ICO development stage went on, the value of the tokens fell significantly. Partly due to the overall ICO market slide, but also the release of Beta CrowdWiz was postponed every few months. The roadmap’s milestones were more than a year behind.
In the meantime Tradologic was completely taken over by Ilan Tzroya with the help of Micha Golod. A criminal case against both characters was initiated in Austria, and Tradologic is now being investigated for facilitating fraud by enabling their merchants to fix odds of trades done on the platform.
In the midst of being investigated by Austrian and Bulgarian authorities, Ilan Tzroya has taken over the assets of Tradologic, Krypton Capital, and their subsidiaries and run away with companys’ funds. All shareholders including myself who invested into his businesses were simply scammed. The businesses turned out to be scamming customers, and that’s the reason they managed to show profits for a short while making the businesses attractive to investors when Ilan needed to raise more funds for yet another round of investments.
As these events were spinning before my eyes, ICOadm.in could no longer act on the orders of Micha Golod and Ilan Tzroya gang. Some shareholders of Tradologic were also investigated in criminal proceedings and it was not clear what to do with the crypto funds held on behalf of CrowdWiz (i.e. Tradologic).
By the time I was able to obtain a positive decision from the majority of shareholders of Tradologic to release the funds to token holders, Micha started a civil proceedings against me trying to get his hands on the crypto raised during the ICO. This delayed the funds release for more than a year more.