A sophisticated Telegram-based OTC scam has siphoned more than $50 million by offering popular altcoins at deep discounts under the guise of private, vested token sales.

The scam, first exposed by the Aza Ventures Bulletin on Telegram, targeted retail investors and crypto whales alike. Victims were promised discounted allocations of trending altcoins like SUI, NEAR, SEI, Axelar (AXL), The Graph (GRT), Aptos, and more, supposedly under early-stage funding or vesting agreements.

🧩 How the Scam Worked

Beginning in November 2024, the scam involved multiple OTC sale rounds, offering up to 50% discounts on select altcoins. On-chain wallet activity initially added credibility, creating a false sense of security among investors. Tokens appeared to be stored in designated wallets, building the illusion of legitimacy.

As the scheme gained traction, it expanded to include other trending tokens such as WELL, GRASS, FLUID, EGold (EGLD), and even tokens listed on Binance

Despite warnings from token teams and prominent investigator ZachXBT, many users continued to participate, lured by prior “successful” deals and the credibility of certain individuals associated with the offers.

🔍 Source 1: The Anonymous Insider

The scam’s central figure, referred to as “Source 1,” was allegedly a well-known figure within the crypto space and possibly linked to a Binance-listed project. Although their identity has not been publicly revealed, speculation rose after Ravindra Kumar, founder of Self Chain (SLF) and formerly Frontier, distanced himself via an X (Twitter) post, denying any involvement.

“The only reason I am not disclosing Source 1’s identity is because I believe keeping this confidential gives us the best chance to recoup both your and my investments,” said the Aza Ventures channel admin.

⚠️ Damage Assessment

  • Estimated Loss: $50M+

  • Victims: Whales, KOLs, and retail investors

  • Tokens involved: Kava, Fluid, OG, Aethir, Movement, The Sandbox, Ronin, Celestia, Wormhole, Arkham, Berachain, and more

Modus operandi: Leveraged hype and liquidity of trending altcoins to gain trust

The Aza Ventures channel claims some of the deals may have been legitimate, with ongoing efforts to recover funds. Authorities and exchanges have reportedly been contacted, with steps underway to freeze suspicious assets.

🔐 Key Takeaway

This incident is a stark reminder that OTC deals over Telegram—especially involving anonymous parties and discounted tokens—are high-risk. Even verified wallets or influencer backing is not a guarantee of safety. Always conduct due diligence, avoid FOMO, and verify offers through official token teams. #XSuperApp #CryptoClause