The $50M OTC Crypto Scam: How Greed and Trust Fueled a Web3 Heist
When “Too Good to Be True” Meets Crypto Twitter
Sipping my third espresso while my cat Satoshi knocks over a ledger (the physical one, thankfully), I couldn’t help but smirk at the irony. Here we are again - another “discount token” scam, but with a twist: this time it snagged institutional players too. The $50M OTC heist targeting tokens like SUI and NEAR wasn’t sophisticated tech - just old-school social engineering dressed in Web3 lingo.
Stage 1: The Bait (Nov 2024 - Jan 2025)
Picture this: Aza Ventures-backed Telegram groups offering APT and SEI at 50% off, with “4-5 month lockups.” Classic pig-butchering tactics:
- Social proof: Early investors got real payouts (hello, Ponzi 101)
- FOMO multipliers: VC endorsements gave false legitimacy
My Dune dashboard shows how initial small wins created a trust avalanche. By January, retail was piling in seven-figure sums - all based on spreadsheet promises from anonymous “Source 1.”
Stage 2: The Hook (Feb - June 2025)
The scam expanded to 30+ tokens including Celestia and LayerZero. My favorite absurdity? The same VCs warning about scams… while their portfolio projects got impersonated.
Key failure point: No one verified:
- Wallet addresses (basic chain analysis would’ve shown recycled funds)
- Smart contract audits (non-existent for OTC deals)
Stage 3: Warnings Ignored (May 2025)
When SUI’s Eman Abio tweeted “NO legit OTC deals exist,” rational actors would pause. But crypto’s two deadly sins prevailed:
- Greed: “This time is different” mentality
- Herd mentality: Big names in chat = perceived safety
Stage 4: Collapse (June 2025)
The finale was almost comedic:
- Excuses about “KYC delays” (from unregulated OTC channels?!)
- Aza Ventures claiming victimhood after facilitating trades
Cold hard stats:
- $50M+ lost across 28 tokens
- Top victims:
- 3 VC firms (median loss: $7.2M)
- 11 “crypto whales” ($2M+ individual losses)
Why This Matters Beyond the Money
This scam exposed three industry cancers:
- OTC dependency: Over-reliance on opaque markets
- Due diligence theater: Even pros skipped basic checks
- Tribalism: Community shilling overrode logic
As I wrap up this analysis (and rescue my notebook from Satoshi), remember: In crypto, if you’re not paranoid, you’re not paying attention. Always verify - because the next “Source 1” is already DMing someone right now.
LunaByte
Hot comment (13)
When Ponzi Schemes Go Blockchain
Just when you thought crypto scams couldn’t get more creative, along comes this $50M masterpiece of social engineering. VCs falling for ‘discount tokens’? That’s like Warren Buffett buying Beanie Babies at a garage sale.
Pro Tip: If an ‘OTC deal’ comes with more red flags than a bullfighter convention, maybe don’t yeet your life savings into it?
Crypto Rule #420: Always verify - because that anonymous DM offering you free money is probably Satoshi’s evil twin.
Cuando la codicia supera al sentido común
¡Otro día, otro timo cripto! Pero este es especial: logró engañar hasta a los ‘expertos’ institucionales. ¿50% de descuento en tokens? Más bien 100% de estafa.
Lección del día: Si un desconocido en Telegram te ofrece un Lambo por dos duros… corre. Y verifica ese contrato inteligente, ¡que no cuesta nada!
¿Alguien más está harto de estos ‘inversores profesionales’ que caen en trampas de manual? 😂 #CriptoPorros
¡Otro día, otra estafa cripto! 😅
Che, ¿en serio alguien creyó en tokens con ‘50% de descuento’? Parece que la codicia nubla hasta a los más expertos.
La ironía: VCs advirtiendo sobre estafas… ¡mientras sus propios proyectos eran usados en el fraude! ¿Alguien dijo ‘conflicto de intereses’? 🎭
Y lo mejor: excusas de ‘retrasos en el KYC’ en canales OTC no regulados. ¡Clásico!
Moraleja: En crypto, si no sos paranoico, no estás prestando atención. ¿Vos ya verificaste tus inversiones hoy? 💸
#CriptoAvispas #EstafaEpica
Cuando el FOMO supera al sentido común
Como desarrollador blockchain en Barcelona, esto me suena más a ‘Ocean’s Eleven’ con jerga DeFi.
Los inversores institucionales cayendo en ofertas OTC ‘demasiado buenas para ser verdad’… ¡Vaya novedad! Hasta mi gato Satoshi (sí, ese es su nombre) hubiera detectado el truco con su olfato para los scams.
Lección del día: En cripto, si no verificas, te mereces perder tus tokens. ¿O vamos a confiar en Telegram como si fuera el BCE?
¿Alguien más quiere compartir su historia de ‘casi caigo’? 👇 #AprendiendoALaFuerza
When Crypto Twitter becomes a crime scene
Just finished reading about this $50M OTC scam, and honestly? It’s like watching a Shakespearean tragedy where everyone ignores the chorus screaming ‘IT’S A TRAP!’
The Irony Award goes to…
VCs warning about scams while their own projects get impersonated. Classic.
Pro tip: If someone offers you tokens at 50% off with ‘trust me bro’ as due diligence, maybe… don’t?
(Satoshi the cat disapproves this message by knocking over another ledger.)
O Clássico ‘Tão Bom Para Ser Verdade’
Mais um dia, mais um golpe no mundo cripto. Desta vez, até os grandes players institucionais caíram na lábia do “desconto especial” em tokens como SUI e NEAR. Parece que a ganância é universal, não?
Fase 1: O Isco (Nov 2024 - Jan 2025) Telegram groups com “VC backing” oferecendo tokens pela metade do preço? Parece legítimo, certo? Errado! Era só Ponzi disfarçado de Web3.
Fase 2: O Engodo (Fev - Jun 2025) 30+ tokens depois, até os VCs estavam sendo impersonificados. Alguém verificou os endereços das wallets? Claro que não! Porque verificar estraga a diversão, não é?
Lição Aprendida: No crypto, se não fores paranóico, não estás a prestar atenção. E sim, o próximo “Source 1” já está na tua DM agora mesmo.
E aí, já caíste num golpe parecido? Partilha nos comentários!
¡50 millones en humo!
Otro día, otro timo en el mundo cripto… pero este con estilo. 🤦♀️
Desde “tokens con descuento” hasta VCs cayendo como moscas, este timo de $50M lo tiene todo. Lo mejor: ¡hasta el gato de Satoshi podría haberlo evitado con un simple chequeo de direcciones!
Lección aprendida: En cripto, si suena demasiado bueno para ser verdad… probablemente sea otro ‘Source 1’ esperando para vaciarte la cartera. 😅
¿Alguien más tuvo un déjà vu leyendo esto? #CryptoNeverChange
The $50M OTC Heist: A Masterclass in Crypto Comedy
Ah, the classic ‘too good to be true’ crypto scam—now with extra institutional flavor! Who knew VCs could fall for the same old Ponzi tactics dressed up in Web3 jargon? My favorite part? The scammers using ‘KYC delays’ as an excuse… from unregulated OTC channels. Genius!
Lesson learned: In crypto, if you’re not paranoid, you’re basically donating to the ‘Source 1’ retirement fund. Always verify, folks—or end up as another stat in someone’s Dune dashboard.
P.S. Satoshi (my cat) suggests sticking to physical ledgers. At least those can’t rug pull you.
