Self Chain Founder Dismissed Amid $50 Million OTC Scam Allegations

The blockchain initiative Self Chain has removed its founder, Ravindra Kumar, from his role as CEO amid a scandal involving a $50 million fraud.

«In light of the recent events that contradict the core principles of Self Chain’s development, we are initiating a decisive leadership change,» the statement reads.

According to an investigation published by Altcoin Alpha, since November 2024, investors were offered off-exchange opportunities to purchase tokens from projects like Aptos, Sei, Swell, Coti, Kava, and others through Telegram groups under attractive conditions. Discounts on tokens locked in a vesting schedule for four to five months reached as high as 50%.

On June 19, Mohammed Wasim, head of the Indian OTC platform Aza Ventures, admitted that his firm inadvertently facilitated numerous fraudulent transactions. The fake sales turned out to be a Ponzi scheme orchestrated by an old acquaintance who was serving as a token dealer. The entrepreneur did not disclose the individual’s identity, citing ongoing discussions about reimbursing the affected buyers.

Users in the comments hinted at searching for an “Indian founder of a project listed on Binance.” Kumar’s post on X was considered as indirect evidence of his alleged involvement in the scam:

«I have been accused of a serious offense, which is a complete falsehood. We are working with a legal team to address this matter.»

Researchers indicate that «dozens of investors» fell victim to the fraudulent scheme, with most investments exceeding $1 million.

«Ravindra Kumar’s role as CEO is officially terminated. He will no longer hold any position, bear responsibility, or have any association with Self Chain in the future,» the cryptocurrency company emphasized.

The statement further noted that the project will continue developing its community-driven layer one blockchain and progress towards the establishment of a DAO.

Regarding the progress of Self Chain, users in the comments pointed out the lack of commits on GitHub, which number fewer than ten.

«This is much better than 75% of the projects you’ll find on Binance. Check for yourself,» wrote one commenter in response.

The price of the Self Chain token (SLF) dropped from approximately $0.13 on June 18 to around $0.085. The asset is trading nearly 90% below its all-time high reached in August 2024, with a market capitalization of $14.3 million.

It’s worth noting that experts attributed the decline of popular tokens on Binance Alpha, such as Polyhedra Network (ZKJ) and 48 Club Token (KOGE), to a dump orchestrated by whales.