Self Chain Founder Denies Involvement in $50 Million OTC Scam

The founder of the cryptocurrency project Self Chain, Ravindra Kumar, has denied allegations of involvement in a fraudulent scheme that led to investors losing up to $50 million.

«I’ve been accused of serious misconduct, which is a complete lie. We are working with our legal team to formulate a statement to address this matter,» the entrepreneur stated.

According to an investigation by the account Altcoin Alpha, since November 2024, offers for over-the-counter purchases of token vesting from major projects such as Aptos, Sei, Swell, Coti, and Kava, offered at significant discounts began to appear in various Telegram groups. The offers involved lock-up periods of four to five months and discounts of up to 50% off market prices.

Initially, the deals were legitimate—investors received tokens under favorable conditions, which built trust in the scheme. By February 2025, the scale expanded to include offers for SUI, NEAR, GRASS, Axelar, and other coins. Many reinvested their funds, with the average investment exceeding $1 million.

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

“Don’t fall for the tricks of Telegram scammers selling through 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 problems with the exchange,” and “the project is delaying KYC procedures.”

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

“We were deceived. I know it’s hard to admit… but it’s the truth,” he stated.

According to Waseem, a broker he referred to as Source 1 offered tokens for sale.

Waseem confirmed that the initial transactions went smoothly. However, authorities concluded that the supplier began operating under a Ponzi scheme after being contacted by the entrepreneur for assistance.

He noted that he is aware of Source 1’s identity but is not disclosing it publicly, as he hopes to secure a refund by the end of the month. Waseem claimed to have already spent all his savings on compensating defrauded buyers and could not cover the claims.

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

The founder of Berachain, known as Smokey The Bera, mentioned he reached out to Waseem regarding the fake OTC market for the project’s tokens. However, Waseem insisted that his sources were reliable and declined to cooperate.

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

In relation to the unidentified Source 1 mentioned by Aza Ventures’ CEO, users in the comments suggested it refers to «an Indian founder of a project listed on Binance.» Kumar’s statement in the community was interpreted as an indirect acknowledgment that he was identified by Waseem using the pseudonym.

Later, the head of the OTC service clarified that he has known Source 1 for over ten years.

It’s worth noting that India, Indonesia, and the CIS countries topped the anti-ranking by MEXC exchange for fraudulent trading activities.