Layer-1 blockchain Self Chain has officially terminated its CEO, Ravindra Kumar, amid allegations of his involvement in a $50 million over-the-counter (OTC) scam. The accusations first surfaced through claims published by firms such as Aza Ventures on Telegram, accusing Kumar of orchestrating a string of fraudulent OTC transactions.
Kumar denied the allegations as "completely false" and stated that his legal team is preparing a detailed response. Despite the denial, Self Chain confirmed on Twitter that Kumar has been stripped of all roles, responsibilities, and associations with the project.
The Self Chain team clarified that no founding members were authorized to engage in OTC deals involving the Self Chain token (SLF), which trades on Binance. Any circulating deals without official sanction were deemed unauthorized. Following these events, the SLF token experienced a price decline of approximately 35.9% over the past week.
The case has reignited concerns about vulnerabilities in crypto OTC trading, which bypasses exchanges to facilitate large-volume trades. The incident has heightened investor wariness globally and is prompting calls for greater transparency within the industry. Authorities in India are reportedly collaborating with relevant parties to explore potential restitution for affected investors.
In addition to Self Chain and SLF, the scandal has stirred apprehension around various tokens linked to OTC fraud, such as SUI, NEAR, SEI, and APT, spotlighting risks in unregulated OTC mechanisms. Market participants and regulators are expected to monitor the situation closely as it may lead to increased oversight of OTC transactions.