OTCsafety

🚨 ATTENTION CRYPTO COMMUNITY! We're diving deep into a recent, shocking $50 million Ponzi scheme that has rattled the crypto world, leaving a trail of broken trust, financial ruin, and calls for justice. If you've ever considered an "exclusive" OTC deal on Telegram, this story is your ultimate warning.

The crypto space is exhilarating, offering unparalleled opportunities. But lurking in its shadows are traps set by deceptive actors, and the latest one has claimed a staggering $50 million, ensnaring everyone from seasoned VCs to everyday investors.

The Honeypot: Too Good to Be True Discounts

It all started innocently enough, between November 2024 and January 2025, within the seemingly exclusive Telegram VC chats. The whispers were irresistible: top-tier tokens like $APTOS, $GRT, and $SEI, offered at an unbelievable 50% discount! The catch? A standard 4-5 month vesting period with promises of "smooth deliveries."

And here’s the sinister genius of it: investors did receive their tokens, right on time. This wasn't just a transaction; it was a masterclass in psychological manipulation. Trust was built, and with that trust, the volume of deals exploded.

The Scale and the Siren Song of FOMO

By February 2025, the "success" fueled an insatiable appetite. The offers grew bolder, featuring even larger allocations and more prominent projects: #SUI, #Near, #Axelar, #Grass. The pitch remained alluringly similar.

But beneath the surface, cracks began to show. Buyers, now confidently pouring millions, noticed a worrying trend: deliveries slowed to a trickle. Excuses poured in – "KYC delays," "exchange congestion," "devs traveling."

The Warnings Were Blared, But Ignored:

As shown in our evidence, even the official project teams tried to intervene. On May 13, 2025, Adeniyi.sui (@EmanAbio) of the SUI team publicly tweeted: “Stop falling for TG scammers selling you OTC deals. There is NO deal. Just go to the public market like everyone else.” Similarly, MultiversX (EGLD) co-founders echoed concerns about "potential EGLD OTC deals" with "serious red flags."

Yet, the market, blinded by the promise of cheap tokens and the memory of past "successful" deliveries, tragically ignored these critical alerts. FOMO – the Fear Of Missing Out – completely overrode logic. The Ponzi machine churned onward.

The Catastrophic Collapse: $50 Million Vanishes

On June 1, 2025, the illusion shattered. New tokens stopped being sent. The bustling OTC channels went silent, an ominous calm before the storm.

By June 19, Aza Ventures, one of the most prominent deal brokers in this opaque market, finally confessed. Their shocking "Important Update" on Telegram read: “We Have Been Scammed.” They revealed that the "Source 1" behind the deals had ghosted.

A staggering $50 million Ponzi scheme had just imploded.

The Path to Ruin (Partial List of Tokens Involved):

Nov '24 – Jan '25: Aptos, Sui, Swell, Coti, Kava, Fluid, OG, Aethir. (The trust-building phase)Feb '25 – Jun '25: Sui, Near, Aptos, Sui, Highstreet, Altlayer, Graph, Celestia, LayerZero, Berachain, EGLD, Wormhole. (The scaling and collapse phase)

"Source 1" Unmasked: Ravindra Kumar

Through diligent community wallet tracing and leaked screenshots, the identity of “Source 1” was revealed: Ravindra Kumar (@ravidsrk), known for his previous project Frontier (Binance-listed) and as the founder of Self Chain (SLF).

While Ravindra publicly denies all allegations on X, claiming innocence, the blockchain doesn't lie. Wallet receipts directly link him. One wallet alone, traced to “Source 1,” reportedly received over $24.5 million on BSC! An Axelar wallet with $310K in 4AXL? Gone, traced to a Binance deposit address – a classic Ponzi move of capital rotation, using new investor funds to pay off older ones.

Beyond a Rug Pull: Lives Devastated

This wasn't just another crypto scam; it was a calculated, devastating blow to a wide range of investors. Well-known VCs, influential whales, top KOLs, and respected crypto OGs lost millions – some over $1 million each. But even more heartbreakingly, individuals lost their **life savings.** The human cost is immeasurable. One Telegram admin relayed a chilling message from a victim: **"My life ended in death, I lost all my 5 years of savings by coming to OTC. I am going to commit suicide, thank you @Aza_Waseem."

The community is in shock, devastated, and united in their pursuit of justice. ### Aza Ventures: Victim or Co-Conspirator? Aza Ventures, once celebrated as a gateway to exclusive deals, is now under intense scrutiny. Publicly, they claim victimhood, stating, "We were victims too." However, their past statements contradict their current financial woes. Just weeks before the collapse, Aza Ventures' CEO, Waseem, confidently stated in a Telegram chat: **"For OTCs Aza Ventures has guaranteed allocation So if seller doesn't send, We will Refund or send Tokens... We manage 200M$+ Fund OTCs are very small."**

Now, Aza Ventures admits only $100,000 remains liquid out of their "personal funds" used to try and "maintain distributions" – a paltry sum compared to the $50 million lost. Their recent statements, like the one below, outline their efforts but paint a grim financial picture:

Indian tax authorities are not taking this lightly. They recently raided Aza's operations, seized devices, and launched a probe into crypto OTC tax evasion. A summons directed to Mohammed Waseem details an inquiry regarding "crypto services provided by you under the Central Goods and Services Tax Act, 2017."

The summons from Indian tax authorities to Mohammed Waseem

While Aza promises legal action and pins hopes on "future token unlocks" from Ravindra, for the shattered victims, recovery feels incredibly distant. They are now asking for victims to submit KYC details for selective refunds, a process that adds another layer of complexity for those seeking their lost funds.

Aza Ventures' communication about liquidating assets and requesting KYC details for selective refunds

The Unforgettable Lesson: Your Trust, Their Weapon

The $50 million question lingers: How did an off-chain OTC market, built on nothing more than "Telegram trust," manage to decimate so many?

The answer is a stark reminder to us all: When you engage in OTC deals via Telegram without robust documentation, legally binding vesting contracts, or proper legal cover… you are not investing. You are gambling in a dark room, with someone else holding the only matchstick.

The allure of discounted tokens fueled greed, and greed blinded even the most experienced players to the fundamental risks of an unregulated, opaque market. In the wild west of crypto, trust is invaluable, but it should never be blind. Always, always, ALWAYS conduct your own thorough due diligence. Verify, verify, verify.

This story is a crucial wake-up call for the entire crypto community. Don't let yourself or your friends fall prey to similar schemes.

What are your thoughts on this colossal scam? Have you encountered similar "too good to be true" offers? Share your insights and experiences in the comments below. Let's learn from this devastating incident and work together to build a safer, more transparent crypto space.

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