Blockchain project Self Chain has removed founder Ravindra Kumar as CEO after users accused him of steering a months-long scheme that drained more than $50 million.
In a statement shared on Monday, the project announced a “decisive leadership transition” following Kumar’s alleged association with fraudulent OTC transactions.
“Ravindra Kumar’s role as CEO has been formally terminated. He will no longer hold any position, responsibility, or association with Self Chain in any capacity going forward,” said the X announcement.
Previously, Kumar dismissed the allegations as “completely false” and said his lawyers would respond.
The ponzi scheme surfaced last November. Brokers offered steeply discounted Telegram OTC deals for GRT, APT, SEI, and other tokens, and paid early buyers, luring larger deposits with assets like SUI. By May, Mysten Labs co-founder Adeniyi Abiodun had warned that no cheap SUI allocation existed, yet money continued to flow. “Stop falling for TG scammers selling you OTC deals,” Abiodun wrote on X. Mysten Labs is the firm behind the Sui blockchain and its native crypto SUI.
Ultimately, the operator defaulted on larger sales of coins like SUI and NEAR, using new deposits to cover old promises — a textbook Ponzi scheme.
OTC desk Aza Ventures apparently handled many of the trades. Chief executive Mohammed Waseem said a broker nicknamed “Source 1” first delivered real returns, then switched to pure crooked tactics. “Initially, Source 1 provided genuine deals. However, he later shifted entirely to Ponzi schemes,” Waseem wrote in a June 19 Telegram announcement. Later reports emerged that Kumar was Source 1, although he denied any links.
Waseem claimed that Source 1 pledged to refund victims by the end of the month. He has withheld the person’s name, believing this choice offers the best chance to recover funds, yet said he will “dox” the broker if repayments fail. Aza’s CEO added that he’s working with authorities on the matter and promised not to disappear.
Berachain’s pseudonymous founder, SmokeyTheBera, stated that he had warned Aza Ventures CEO Mohammed Waseem about the Telegram OTC scam, but Waseem dismissed the alert, calling the source unreliable, according to an X post.
“Glad to see this nonsense properly being busted. My condolences to anyone who got scammed in this. Sometimes if something is too good to be true, it’s just not true,” wrote SmokeyTheBera.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Trade Crypto On Coinhub Exchange
Trade Crypto On Coinhub Exchange
Stay ahead of the market by turning news insights into trading opportunities. With Coinhub Exchange, you can seamlessly buy, sell, and manage your digital assets, all in one secure platform. Take advantage of real-time market insights, deep liquidity, and fast execution for your favorite cryptocurrencies. Don’t just read about it — trade crypto now!
Disclaimer
The content of this article shown by Coinhub News, powered by The Block, is for informational purposes only and should not be construed as financial, legal, tax, or investment advice. Coinhub News and its affiliates are not a licensed financial advisor, legal advisor, broker, or tax advisor, and ... should not be considered as professional advice or a recommendation to engage in any specific investment, legal decision, or financial transaction. Cryptocurrency markets are highly speculative and volatile. Readers should perform their own independent research and consult with a qualified professional before making any financial or legal decisions. The opinions expressed in this article are those of the author and do not necessarily represent the views or opinions of the Company of its affiliates. Additionally, the Company does not make any representations or warranties regarding the accuracy, timeliness, reliability, or completeness of any information in this article. By accessing this content, you acknowledge that any reliance on the information contained in this article is solely at your own risk. The Company is not responsible for any financial losses, legal disputes, or other damages that may arise from reliance on this content or from any investment or legal decisions based on the information provided. Investing in cryptocurrencies involves substantial risks, including the risk of losing your entire investment, and you should carefully consider whether it is appropriate for your circumstances.
Read more
