21.06.2025 04:46

A massive cryptocurrency over-the-counter (OTC) trading scam, netting fraudsters over $50 million, has been exposed. The scheme, uncovered on June 21st, targeted high-profile investors, including venture capitalists and influential market figures known as "whales," across multiple cryptocurrencies such as SUI, NEAR, Axelar, and SEI. This sophisticated operation highlights the vulnerability within the unregulated OTC market.

Initially operating through a Telegram group, the scam built trust by fulfilling early promises. However, it quickly transitioned into a classic Ponzi scheme, ultimately collapsing under its own weight and leaving numerous investors with substantial losses. The perpetrators, allegedly associated with an entity called Aza Ventures, reportedly used a key trader, dubbed "Source 1," to enhance their credibility. Claims suggest "Source 1" is potentially linked to a Binance-listed project and may have Indian origins, although this requires further investigation.

This elaborate fraud underscores the urgent need for greater scrutiny and regulation within the OTC cryptocurrency trading ecosystem. The incident serves as a stark reminder of the sophisticated tactics employed by scammers targeting both institutional and individual investors. Improved due diligence procedures and stricter regulatory oversight are crucial to protecting investors from future similar schemes and fostering greater confidence in the cryptocurrency market. The ease with which this fraudulent operation ensnared high-net-worth individuals emphasizes the pervasiveness of such risks and the need for enhanced protective measures.