Explosive: SelfChain Founder Denies $50M OTC Crypto Scam Ties

Accusations of a massive $50 million scam have rocked a corner of the crypto world, bringing the spotlight onto SelfChain founder Ravindra Kumar. He is vehemently denying any connection to the fraudulent activity, which centered around illicit over-the-counter (OTC) token deals.

Allegations Surface Against SelfChain Founder Ravindra Kumar

According to a report by DL News, SelfChain founder Ravindra Kumar has been named in connection with a significant $50 million crypto scam. The scheme allegedly involved fraudulent OTC token transactions. Kumar is specifically accused of being “Source 1,” the individual believed to be the architect behind the operation.

Responding to these serious claims, Mr. Kumar has labeled the allegations as false. He stated that his legal team is currently preparing a formal response to address the situation.

Understanding the OTC Crypto Scam Mechanism

This particular crypto scam involved the sale of fake vested tokens for prominent projects such as Sui and Near. Over-the-counter (OTC) deals happen directly between two parties, bypassing public exchanges. While legitimate, they can be exploited for scams, especially when dealing with tokens that have vesting schedules (meaning they are released over time).

In this instance, the scam artists were reportedly selling tokens that victims believed were real, vested assets, but were in fact worthless or non-existent. This allowed them to collect significant funds from unsuspecting buyers.

The $50 Million Scam Unraveled

The fraudulent activity was brought to light by Mohammed Waseem, CEO of Aza Ventures. Waseem admitted that his firm had unknowingly facilitated some of these fraudulent deals. Recognizing the harm caused, Aza Ventures has pledged to provide refunds to the victims impacted by the scam.

Authorities in India have also weighed in on the matter. They have confirmed that “Source 1” was operating what they describe as a Ponzi scheme. This suggests that funds from newer victims may have been used to pay off earlier ones, a common characteristic of such fraudulent structures.

Ravindra Kumar Maintains Innocence Amidst Accusations

Despite the allegations linking him to the $50 million scam and the “Source 1” identity, Ravindra Kumar continues to assert his innocence. His denial indicates a potential legal battle ahead as his team prepares to formally counter the claims made against him. The outcome of this situation remains to be seen, but it highlights the ongoing risks present in the cryptocurrency market, particularly within less transparent OTC transactions.

Conclusion: Navigating Risk in the Crypto Landscape

The accusations against the SelfChain founder and the details of the alleged $50 million scam serve as a stark reminder for participants in the crypto space. While the market offers opportunities, vigilance is crucial, especially when engaging in private or OTC deals. As the situation unfolds and Ravindra Kumar prepares his defense, the community watches closely, hoping for clarity and justice for the victims of the reported Ponzi scheme.

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