Self Chain, a blockchain infrastructure project, has officially terminated its CEO and founder, Ravindra Kumar.
The termination followed serious allegations linking him to a months-long $50 million over-the-counter (OTC) crypto fraud scheme.
In a public statement issued Monday, the project described the move as a “decisive leadership transition,” confirming that Kumar would no longer hold any position or association with the organization.
The allegations suggest Kumar played a central role in orchestrating the scheme.
The scheme targeted retail and institutional participants with too-good-to-be-true crypto deals on platforms like Telegram.
Ravindra Kumar Denies Involvement as Legal Action Looms
Despite his dismissal, Kumar has denied any involvement in the alleged fraud, calling the accusations “completely untrue” and asserting that his legal team would be issuing a formal response.
However, the scale and duration of the scheme, coupled with mounting evidence and public backlash, have significantly impacted Self Chain’s credibility.
The project leadership did not disclose details on Kumar’s alleged actions, but emphasized that the move was necessary to protect the community and restore transparency after trust was severely eroded.
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Ponzi-Like Scheme Exploited OTC Crypto Channels
The fraudulent activity dates back to November of last year, when users began reporting suspicious OTC deals circulating in Telegram groups.
Brokers promoted discounted sales of popular tokens such as GRT, APT, SEI, and later SUI, attracting early buyers with real returns before luring larger deposits.
The operation evolved into a classic Ponzi scheme, early participants were paid using new deposits, while no actual allocations of tokens like SUI or NEAR were delivered in the end.
Despite industry warnings, including a public alert from Mysten Labs co-founder Adeniyi Abiodun in May, the scheme persisted.
Source of the Fraud Tied to Pseudonymous Broker “Source 1”
Much of the fraudulent trading was reportedly facilitated by OTC desk Aza Ventures.
Its CEO, Mohammed Waseem, stated that a broker known only as “Source 1” initially provided legitimate transactions but later turned to outright fraud.
While Waseem withheld the identity of Source 1 to preserve a chance of victim reimbursement, later reports alleged that Kumar was the person behind the alias.
Waseem added that Source 1 promised to repay victims by the end of the month, and warned he would publicly identify the individual if repayments are not made.
Authorities are now reportedly involved in investigating the matter.
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Industry Voices Respond as Damage Control Efforts Begin
The scandal has sparked widespread reaction from the blockchain community.
Berachain co-founder SmokeyTheBera claimed he had previously warned Aza Ventures’ CEO about the Telegram OTC scam but was ignored, calling it a textbook case of ignoring early red flags.
“Glad to see this nonsense properly being busted,” he wrote on X, expressing sympathy for the victims. Self Chain is now under pressure to rebuild community trust while cooperating with potential legal proceedings.
The project’s future remains uncertain as it distances itself from Kumar and confronts the financial and reputational damage caused by one of the latest high-profile crypto fraud cases.
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