SUI OTC Trading Scam Exposed: $50 Million Ponzi Scheme Targeting VCs and Whales Uncovered

COINOTAG News reports a significant over-the-counter (OTC) trading fraud uncovered on June 21st, impacting multiple cryptocurrencies including SUI, NEAR, Axelar, and SEI. The scheme, which defrauded investors of more than 50 million USD, targeted prominent venture capitalists, influential market commentators, and high-net-worth whale investors. Operated via a Telegram group, the scam initially gained credibility by delivering on early commitments before evolving into a classic Ponzi structure that ultimately collapsed.

The orchestrators, identified as Aza Ventures, reportedly promoted a key trader known as “Source 1,” who is claimed to be the founder of a Binance-listed project, potentially linked to Indian origins. This case underscores the critical need for enhanced due diligence and regulatory oversight in the OTC crypto trading space to protect institutional and retail investors from sophisticated fraudulent schemes.