23.06.2025 14:57
Self Chain, a Layer 1 blockchain project, has severed ties with its CEO, Ravindra Kumar, following serious accusations of a $50 million over-the-counter (OTC) scam. The allegations, initially surfacing on Friday via Telegram posts from Aza Ventures, implicated Kumar in a series of fraudulent OTC transactions. This swift action by the company underscores the gravity of the situation and the potential damage to the Self Chain project's reputation.
Kumar, responding to the accusations, vehemently denied any wrongdoing in a public statement. He promised a detailed refutation from his legal team, asserting the claims were entirely false. His statement, however, did little to stem the negative market reaction to the scandal. OTC transactions, it's worth noting, occur outside regulated exchanges, often involving a broker to facilitate large trades while minimizing market impact. This lack of transparency makes them particularly susceptible to fraudulent activities.
The fallout has been immediate and significant. The Self Chain token (SLF), listed on Binance, experienced a dramatic 35.9% decline in the past week, directly attributable to the unfolding scandal. Self Chain's official statement, delivered via a Monday tweet, confirmed Kumar's dismissal, unequivocally stating he is no longer affiliated with the company in any capacity. Furthermore, the statement emphatically denied any authorization for any founding member to conduct OTC transactions involving SLF tokens.
In a telling move, Kumar retweeted Self Chain's announcement and promptly removed all references to his CEO position from his social media profiles, seemingly acknowledging the seriousness of the allegations and the company's decision. The incident serves as a stark reminder of the risks associated with cryptocurrency investments and the importance of due diligence, particularly concerning less-regulated market activities like OTC trading. The investigation into the alleged scam continues, and its implications for the future of Self Chain remain to be seen.
