Self Chain Founder Rejects Involvement in $50 Million OTC Scam

The founder of the cryptocurrency project Self Chain, Ravindra Kumar, has dismissed allegations linking him to a fraudulent scheme that reportedly resulted in investor losses of up to $50 million.

«I have been accused of a serious wrongdoing, which is completely false. We are working with our legal team on a statement to address this issue,» the entrepreneur stated.

According to an investigation by the authors of the Altcoin Alpha account, since November 2024, various Telegram groups have offered over-the-counter (OTC) purchases of locked tokens from major projects like Aptos, Sei, Swell, Coti, and Kava at significant discounts. These offers involved lock-up periods of four to five months and discounts of up to 50% compared to market prices.

Initially, the transactions were legitimate—investors received tokens under favorable conditions, which fostered trust in the scheme. By February 2025, the scope expanded with offers for SUI, NEAR, GRASS, Axelar, and others. Many reinvested their funds, with the average investment exceeding $1 million.

By May, several projects issued warnings about scams in OTC sales.

«Stop falling for the tricks of Telegram scammers peddling OTC deals. They don’t exist!» wrote Eman Abio from the SUI team.

After June 1, tokens ceased to reach new owners. Concerned investors received vague responses like «the source is traveling,» «there were issues with the exchange,» and «the project is delaying KYC procedures.»

On June 19, CEO of the Indian OTC platform Aza Ventures, Mohammed Wasim, reported that his firm had inadvertently facilitated dozens of fraudulent transactions in recent months.

«We were deceived. I know it’s hard to admit… but that’s how it is,» he stated.

According to Wasim, the broker offering tokens for sale was personified as Source 1.

Wasim confirmed that the initial deals went smoothly, but later, the supplier shifted to a Ponzi scheme—a conclusion reached by law enforcement after Wasim reported the situation.

He noted that he knows the identity of Source 1 but is not disclosing it publicly, as he hopes to recover funds by the end of the month. Wasim claimed that he has spent all his savings compensating defrauded buyers and cannot cover their claims.

«I trusted Source 1 and was misled. I relied on him so much that I invested both company funds and my personal capital with him,» the CEO of Aza Ventures stated.

The founder of Berachain, known as Smokey The Bera, mentioned that he contacted Wasim regarding the fake OTC token market. However, Wasim insisted that his sources were reliable and declined to collaborate.

«My condolences to everyone who fell victim to the scam. Sometimes, if something seems too good to be true, it just isn’t,” Smokey The Bera concluded.

Regarding the undisclosed identity of Source 1 mentioned by CEO Wasim, users in the comments suggested it refers to «an Indian founder of a project listed on Binance.» Kumar’s statement within the community was considered an indirect admission that Wasim referred to him through a pseudonym.

The head of the OTC service later clarified that he has known Source 1 for over a decade.

For reference, India, Indonesia, and CIS countries topped the anti-rating of the MEXC exchange for fraudulent trading activities.