$100M+ OTC Ponzi Scam. Beware of Trust on it.

[Z_MBFM]

OTC deals are a medium where the project team offers their position tokens to specific individuals at a lower price, because they cannot advertise or they can do it outside their rules. Don't believe it. For example, the  price of SUI token is $2.8. The team is offering their locked token alert $1.4 to the publication, which will unlock in 3-6 months. at this discount price, investors can double the profit to see the token politics. Again, if it dumps up to 30-40%, then the invested capital is roughly recovered. Although the losses can continue if the dump is higher.

Currently some information-rich OTC platforms, such as Venture, are providing this OTC, they are promoting with various influencers that they deal in OTC like SUI, Berachain, Aptos,KAVA, IMX etc.

But CEO @Aza_Ventures today officially announced that they have staged a scam
Source - https://t.me/Aza_Ventures/25453

So, finally it turned into a Ponzi scheme. When one new project after another came out, money was taken from new users and given to old users. And at one point when a large amount was collected and a very large amount was invested in these OTC deals, then this scam was executed. It is estimated that over $100 million were scammed.

[JeromeTash]

Your post title says nothing about the exact scam. Who is scamming? Is it SUI or someone else. Honestly, I tried to read through the post, but you are not being straight forward on what's going on and any other person out there would have a hard time connecting the dots. Please be straight forward about the accusation.

Also, this should be in the scam accusations board and not Reputation, if there is clear evidence that they are scammers or a Ponzi scheme.

[Mahiyammahi]

Who is scamming? Is it SUI or someone else.

This scam was made by a unknown source who's identify still not disclosed yet. AZA ventures acted as a 3rd party for rising fund from people and managing all the funds.

This OTC deal was about those Top 10 CMC listed and top tier exchange listed token which was offered almost 40-50% discounts from the current market price. People's we're convinced by saying that these token's are locked and everyone will get these by vesting through several months. Full token unlock period was 3month as I see. People's were jumping without any consent or research. There was some token that we're fully unlocked total supply even though their OTC deals we're available in disguise of vested token.

Even Sui Co - Founder Adeniyi.sui exposed this scam on his X handle . But still people jumped for this shit.


So what happened next is , OTC deal's were coming one after another . No one was securing their initial and invested more for better return. Eventually this behavior lead to them to execute ponzi scheme. Paying  previous user's vested token by getting new commers fund. In reality there was no vested token even from that project.

Some of my friend's and community members did participate on this and they lost all of their life savings. Even some crazy people invested by borrowing money. I hope there won't be any suicide case for this.

they deal in OTC like SUI, Berachain, Aptos,KAVA, IMX etc.

The total supply of Kava was already fully unlocked so their shouldn't be any vested token for a Angel / private sale investor invested on it. It was a clear deception but still people's we're investing.

It was not like OTC deals aren't real totally , some OTC deal exist but this hype and constant flow of money lead them to do this scam.

[Amphenomenon]

-snip-

FOMO will often make many victims and this is no difference. The unknown platform hopefully should pay up but this is under probability. While according to the news this didn't start up as a Ponzi scheme, we should always remember that we are dealing with humans and so it's better not to invest all your savings or get a loan for it, this can go sideways and you will be in the risks of losing everything all because one was looking for more ROI.

OTC deals like they say are not entirely scam but just as scammers did with ICO and the likes, this ought to be expected we should not forget past scam and use those knowledge and even more to avoid future scam. Researching for possible scam would also have been helpful, rather than focusing on ROI, which majority does and suffer.

[shinratensei_]

Why would anyone with sane mind make OTC deals with some shady unreputable entity, the fact that it's vested means OTC is as risky as it can be, moreover I would never trust influencer in my life, every post they made is because they have ulterior motive.Another question about vested OTC coin trading,on what address does the token get vested? and if token vested how you gonna change ownership other than giving privkey that's known by both party?

I could never wrap around how people buy things from OTC like this.

[Firstfrost]

Why would anyone with sane mind make OTC deals with some shady unreputable entity, the fact that it's vested means OTC is as risky as it can be, moreover I would never trust influencer in my life, every post they made is because they have ulterior motive.Another question about vested OTC coin trading,on what address does the token get vested? and if token vested how you gonna change ownership other than giving privkey that's known by both party?

I could never wrap around how people buy things from OTC like this.

The only reason that comes to my mind is GREED, you can imagine how the victims would have felt when they saw the deals (which obviously is shady). Knowing they can buy low and think they can sell at the normal price will keep pushing them to engage in the deals more.
 
It still baffles me how they didn’t think it was even illegal to buy at a rate lower than the normal market price from an hidden entity/team, all i see is greed, desperation and FOMO. I hope people will stop allowing greed to cloud their decisions from now onwards.

[doomloop]

Why would anyone with sane mind make OTC deals with some shady unreputable entity, the fact that it's vested means OTC is as risky as it can be, moreover I would never trust influencer in my life, every post they made is because they have ulterior motive.Another question about vested OTC coin trading,on what address does the token get vested? and if token vested how you gonna change ownership other than giving privkey that's known by both party?

I could never wrap around how people buy things from OTC like this.

The said reason is due to the cheap price of the tokens/coins and maybe they did some research first and believe that the entity that they are dealing with is truly legit but they are wrong, too bad.

Even if we say it is legit, yes that it is still risky because the cryptos are locked for a long time and what if the value of them dropped later on? With the lots of scams that have already occurred over the years, I'm surprised on why influencers who promote them are still there? We should have a law about them. On the private key part, remember this is done in some platforms and that could be known and trusted. They can act as an escrow for it.

[qurbanshah02]

Why would anyone with sane mind make OTC deals with some shady unreputable entity, the fact that it's vested means OTC is as risky as it can be, moreover I would never trust influencer in my life, every post they made is because they have ulterior motive.Another question about vested OTC coin trading,on what address does the token get vested? and if token vested how you gonna change ownership other than giving privkey that's known by both party?

I could never wrap around how people buy things from OTC like this.

The said reason is due to the cheap price of the tokens/coins and maybe they did some research first and believe that the entity that they are dealing with is truly legit but they are wrong, too bad.

This happens when the project is not running for such a long time and they do not increase their price so much for scam. In this work, first of all, they build trust and describe the crypto in a very digital way in their project and people like us go crazy after seeing this token and its small price and put ourselves in loss. Your point is absolutely correct, it is wrong, but they see it well and scam.