Self Chain Removes CEO Amid $50M Crypto OTC Fraud Allegations Tied to Telegram Scheme

Blockchain startup Self Chain has officially removed founder Ravindra Kumar from his role as CEO following serious allegations linking him to a multi-month over-the-counter (OTC) crypto fraud that may have siphoned more than $50 million from investors.

The announcement, made Monday on the project's official X (formerly Twitter) account, described the move as a “decisive leadership transition.” The company stated that Kumar "will no longer hold any position, responsibility, or association with Self Chain in any capacity going forward."

Kumar has denied the allegations, calling them “completely false” and stating that his legal team is preparing a formal response.

The alleged scheme began circulating in November 2023. Promoters offered discounted deals for tokens like GRT, APT, SEI, and SUI via Telegram OTC channels, luring early buyers with small, successful trades. As confidence grew, larger deposits were requested. But by May, red flags had surfaced. Mysten Labs co-founder Adeniyi Abiodun, whose firm launched the Sui blockchain, publicly warned that no discounted SUI allocations were being sold.

“Stop falling for TG scammers selling you OTC deals,” Abiodun posted on X.

According to victims and other parties involved, the scheme escalated into a classic Ponzi setup—early investors were paid using new deposits. Once large allocations of tokens like SUI and NEAR were promised but failed to materialize, the system collapsed.

Aza Ventures, an OTC desk reportedly involved in processing many of the trades, also came under scrutiny. CEO Mohammed Waseem said the fraudulent deals originated with a broker known as “Source 1,” who initially delivered real results but later shifted to fraudulent activity. While Waseem has not publicly identified Source 1, several reports have alleged that Ravindra Kumar used this alias—something he firmly denies.

Waseem claimed Source 1 pledged to refund victims by the end of the month and warned that he would publicly reveal their identity if repayments are not made. He also stated that Aza Ventures is cooperating with law enforcement and remains committed to helping affected users recover funds.

Waseem | Aza Ventures in Aza Ventures Public

🚨 Important Update 🚨 We Have Been Scammed, I know, There is No Easy way to Say it.. But it is What it is. I met with the authorities today and now have full clarity on the situation. I want to share everything transparently with all of you. Key Points: Source 1’s Deception: Initially, Source 1 provided genuine deals. However, he later shifted entirely to Ponzi schemes. I am currently reviewing all deals to separate the genuine ones from the fraudulent. Projects like SUI have been confirmed as Ponzi scams. Unfortunately, Source 1 was also the upstream source for both Source 2 and Source 3—hence why all distributions stopped simultaneously. Interaction with Authorities Thankfully, I’ve been able to demonstrate to the authorities that I, too, was deceived by Source 1. There is no major issue from their side for now—apart from some dues related to taxes on the fees I have taken. Given that I plan to refund all fees, the net tax amount will not be a problem. Most importantly, the authorities have confirmed…

Telegram

The scandal has sent ripples through the crypto community, with industry leaders calling for greater vigilance. SmokeyTheBera, a pseudonymous founder of Berachain, said he previously warned Aza Ventures about the scam but was brushed off.

“Glad to see this nonsense properly being busted. My condolences to anyone who got scammed… Sometimes if something is too good to be true, it's just not true,” he wrote on X.