Key Takeaways:
- Over $50 million was stolen in a Telegram-based over-the-counter (OTC) crypto scam targeting major tokens, including SUI and NEAR.
- Victims include venture capitalists, key opinion leaders, and crypto whales, many of whom face massive personal losses.
- The scam evolved from a trust-building phase to a classic Ponzi scheme before collapsing in June 2025.
In late 2024, multiple supposedly legitimate OTC cryptocurrency deals began circulating in off-the-record Telegram channels. With offers to provide early allocations in tokens such as Aptos, SEI, and Swell at significant discounts, such proposals became popular among venture houses, crypto icons, and large-ticket investors.
The trades were doing well initially, tokens were being disbursed in time, and investors were realizing healthy yields. That created credibility and spawned wider involvement.
Stimulated by timely releases and word-of-mouth success, initial investors began to reinvest in growing increments. These transactions appeared to be organized by employing four- to five-month vesting terms, adding an air of professionalism and legitimacy to the undertaking.
OTC Crypto Deals Rapidly Expanded Scope
From February to May 2025, the size and number of OTC deals doubled, this time engaging major tokens like SUI, NEAR, Graph, and Axelar. The structure didn’t change in deep discounts and time-vesting, but it was much larger in scale. Investors, emboldened by past success, channeled even more capital.
Despite follow-up threats in May from industry officials not to perform OTC activity through Telegram, the scheme continued to attract new victims. Such faith-based growth gave rise to this scam.
Distributions stopped on 1 June. Inquirers among victims received evasive replies due to holidays, exchange errors, or regulatory challenges. The inevitable implosion loomed.
Crypto Community Investigates Wallet Activity Daily
By mid-June 2025, Aza Ventures, one of the key players behind promoting the deals, announced they too had been defrauded. Their main supplier, referred to as “Source 1,” was revealed to be the architect of the scam, reportedly using funds from new deals to pay earlier ones, classic Ponzi behavior.
Aza Ventures disclosed that two other sources were also indirectly reliant on Source 1. Although they claim to know him to be an Indian founder of one such scheme being monitored on Binance, they have made up their minds to seek recovery in anonymity.
The total harm now exceeds $50 million, and the community tracks wallets and builds evidence to recover stolen money and attempt to prevent similar scams in the coming years.
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