Self Chain CEO Removed Amid $50M Crypto Fraud
The blockchain project Self Chain has removed its founder, Ravindra Kumar, from his position as CEO after being implicated in a fraudulent scheme that diverted over $50 million. In a statement on Monday, the project announced leadership changes due to Kumar’s alleged involvement in scammy OTC crypto transactions. The role of CEO has been formally ended for Kumar by Self Chain, eliminating any association with the project. Kumar dismissed the allegations as false, stating that legal action would be taken. The scheme, active since last November, tricked buyers with discounted OTC Telegram deals involving GRT, APT, SEI tokens, among others. Despite warnings that no such cheap tokens existed, the scam continued, mirroring a Ponzi model. Aza Ventures, the OTC desk handling several trades, experienced the fallout as CEO Mohammed Waseem pointed to an anonymous broker, 'Source 1.' Initially offering real deals, the broker eventually resorted to scams. Speculation arose that Source 1 could be Kumar, which he denied; yet Aza's CEO remains focused on refunding victims and is working with authorities. SmokeyTheBera, Berachain's founder, expressed relief at the scammers' downfall, urging vigilance in crypto dealings. This situation serves as yet another reminder of the importance of skepticism towards offers that seem too good to be true.
FAQ
❓ What was the alleged fraud involving Self Chain?
Self Chain's CEO was accused of participating in a $50 million fraudulent Ponzi scheme involving OTC crypto trades.
❓ Who is Source 1, and what role did they play?
Source 1 is an anonymous broker accused of switching from genuine OTC deals to Ponzi schemes, potentially connecting to Self Chain's issues.
❓ How is Aza Ventures involved in this controversy?
Aza Ventures managed many trades in the scheme. Their CEO is working with authorities to address the fraud and refund victims.