Aza Ventures OTC Scam Defrauds Investors of $50 Million

Aza Ventures, a fraudulent venture capital fund, orchestrated a massive over-the-counter (OTC) altcoin scam, defrauding investors of over $50 million between November 2024 and June 2025. The scam operated through trusted Telegram channels, initially luring investors with seemingly legitimate offers of discounted OTC deals available through invite-only groups. High-profile tokens such as Aptos, The Graph, SUI, and Axelar were offered at steep discounts of up to 50% below market value, with promises of token delivery after a 4 to 5-month vesting period. Early investors received their tokens as promised, creating an image of legitimacy that encouraged more people to contribute.

By the beginning of 2025, the scam had gained significant traction, with venture capital firms, key opinion leaders (KOLs), and crypto whales allocating substantial funds. The expansion of OTC offerings in February 2025 further drew in more investors, as new tokens like SUI, NEAR, GRASS, Axelar, and Fluid were added to the list. Despite public warnings from crypto insiders, many investors overlooked inconsistencies and continued to trust the scheme. For instance, Eman Abio from the SUI team and Lucian Mincu of MultiversX issued statements discouraging participation in such OTC deals, but their warnings were largely ignored due to the past successful deliveries.

The collapse of the scam began in June 2025 when reports of missing token distributions started to surface. The final known deal was for Fluid tokens, introduced on June 1, after which the delivery of previously promised tokens stopped entirely. Organizers of the scam attributed the delays to travel issues and Know Your Customer (KYC) complications, but no concrete updates followed. On June 19, Aza Ventures, one of the lead VC groups involved, publicly admitted that they too had been scammed. The firm revealed that the dealer, known as “Source 1,” had used new funds to cover older promises in a Ponzi-like cycle. Additionally, other supposed sources, “Source 2” and “Source 3,” were unknowingly routing deals through the same person.

Aza Ventures stated that they believed the deals were legitimate, as early deliveries had occurred. However, the scheme eventually turned into a fund recycling operation. The crypto community has since begun tracking transactions to understand how the scam progressed. Wallet addresses linked to Source 1 have been exposed, and screenshots and transaction histories are being reviewed by on-chain investigators. The token list spans more than 30 crypto assets, including Celestia, LayerZero, Ronin, Sandbox, Berachain, and Conflux. Recovery efforts are underway, but many affected parties remain uncertain about reimbursement.

What made Aza Ventures unusually convincing was its selection of tokens. Unlike typical scams involving meme coins or unverified contracts, this operation listed trending tokens with genuine liquidity and social presence: Wormhole, Celestia, Axelar, Arkham, and more. These choices hinted at insider access and real partnerships, which misled even experienced market participants. Additionally, subtle engagement from known KOLs and silent investors gave further legitimacy to the operation.

In recent developments, suspicions have turned toward a figure referred to only as “Source 1,” who has now vanished from the Aza Ventures OTC channel. While the admin has declined to reveal their identity, it’s alleged that this individual is also tied to a Binance-listed project. One suspect, Ravindra Kumar of Self Chain (formerly Frontier), publicly denied involvement after speculation surfaced online.

The scam’s unraveling raises new questions about the ease with which bad actors can blend into crypto’s fast-moving OTC landscape. Still, the broader crypto sector continues building, learning from each breach. As exchanges freeze assets and victims pursue restitution, the episode reinforces the importance of trust systems and on-chain transparency.

The fraud news comes shortly after the crypto scam of Nobitex Exchange, where over 100 million of digital assets were stolen by hackers. Following the hack, hackers posted the complete source code and systems information of Nobitex publicly, putting users' funds at risk. The exposure of this OTC crypto scam highlights the need for increased vigilance and due diligence in the cryptocurrency investment community.