Self Chain Fires CEO Amid $50M Crypto Fraud Allegations

Self Chain terminated its CEO, Ravindra Kumar, after allegations connected him to a $50 million fraudulent over-the-counter (OTC) crypto scheme. The Layer 1 blockchain project announced Kumar's removal on its official X account.

Self Chain stated that Kumar will “no longer hold any position, responsibility or association” within the company effective immediately. The company's remaining executive team will manage day-to-day operations during the internal review.

The termination came after Mohammed Waseem, CEO of Indian OTC broker Aza Ventures, revealed on June 20 that his firm had unknowingly facilitated dozens of fraudulent OTC transactions over several months. He said investors lost approximately $50 million through these deals.

According to Waseem, a counterparty identified only as “Source 1” sold vested token allocations for major projects, including Sui, Near, Axelar and Sei at steep discounts. Online speculations suggest that Ravindra Kumar may have been operating under this alias, a suspicion that helped prompt his dismissal. However, Kumar denied the allegations:

I've been accused of serious wrongdoing, which is completely false. My legal team and I are working on a statement to address this matter. Stay tuned for updates.

Several blockchain founders had previously warned about phantom OTC deals. Waseem pledged to refund all affected investors, though he acknowledged his personal funds are exhausted after covering advance payments. He contacted Indian authorities, who confirmed the operation was a Ponzi scheme and offered assistance with refunds.

OTC trading allows large token allocations to be sold directly between parties without exchange oversight. The practice provides liquidity but carries counterparty risk. The incident highlights the need for enhanced due diligence in private token markets, particularly when intermediaries may be misled by sophisticated fraudsters.