Ponzi-Style Telegram Scam Uses Real Tokens to Steal Millions

$50 Million Telegram-Based Crypto Scam Exposed: Major Tokens and Top Investors Targeted

In what is being called one of the largest cryptocurrency scams of recent months, a sophisticated over-the-counter (OTC) fraud scheme operating through Telegram has swindled investors out of an estimated $50 million. The elaborate con targeted high-value players in the crypto space, including venture capitalists (VCs), key opinion leaders (KOLs), and major token holders, by promising lucrative deals on well-known tokens such as SUI, SEI, NEAR, Axelar, and more.

Source: X

A Calculated Scheme That Took Months to Unfold

The scam didn’t happen overnight. Instead, it was the result of meticulous planning over several months, designed to avoid public scrutiny while systematically draining funds from eager buyers. According to reports highlighted by Wu Blockchain on X (formerly Twitter), the fraudsters carefully built layers of trust among investors, creating what appeared to be a legitimate network of OTC token transactions.

The operation began quietly, with fraudsters delivering tokens as promised in early deals, further strengthening the illusion of legitimacy. This trust-building phase was critical in drawing more prominent investors deeper into the scheme. What began as small deals soon escalated into larger transactions involving millions of dollars, eventually collapsing in June 2025.

Stage 1: Establishing Trust (November 2024 – January 2025)

The scam's origins can be traced to late 2024. Several private investment circles and venture capital groups began promoting exclusive Tier-1 OTC crypto deals in a series of Telegram channels. These offers included tokens from major projects like Graph (GRT), Aptos (APT), SEI, and Swell, often advertised at up to 50% below market rates, with a standard vesting period of four to five months.

Source: X

Early transactions went off without a hitch. Buyers received their tokens on schedule, further cementing the fraudsters’ reputation as reliable brokers in the competitive OTC market. The seemingly successful fulfillment of these initial deals encouraged a growing number of investors to participate, laying the foundation for larger transactions down the line.

Stage 2: Expansion and Exploitation (February – June 2025)

By February 2025, the fraudulent network had significantly ramped up its activity. The Telegram groups grew in size and influence, offering deals on a wide variety of tokens, including SUI, NEAR, Axelar, and GRASS. The consistent track record of successful token deliveries up until that point boosted investor confidence even further.

Source: X

The fraudsters leveraged this momentum to orchestrate even larger deals. The promise of discounted rates on in-demand tokens attracted major whales and institutional players looking to maximize returns through what appeared to be exclusive OTC channels.

Stage 3: Red Flags Ignored (May 2025)

By May 2025, cracks began to appear in the scheme. Industry insiders and analysts started raising concerns about the legitimacy of certain deals and the unusual activity within these Telegram groups. Some tried to warn the community through social media posts and crypto news outlets.

Source: X

However, these warnings largely fell on deaf ears. Many investors, blinded by the consistent payouts and the promise of high returns, chose to ignore the red flags. This false sense of security would prove costly in the weeks that followed.

Stage 4: The Collapse (June 2025)

The unraveling began on June 1, 2025, when the scammers introduced a final OTC deal offering Fluid tokens. Unlike previous deals, this one quickly fell apart. Token distributions from earlier transactions suddenly ceased, and investors who had been expecting their allocations were met with vague explanations citing technical issues and delays.

By mid-June, the reality of the situation became clear. On June 19, Aza Ventures, a prominent investment firm, publicly acknowledged that it had also fallen victim to the scheme. The firm identified its primary contact in the scam as “source 1,” revealing that what many believed was a legitimate OTC operation was, in fact, a well-disguised Ponzi scheme.

Source: X

The Method Behind the Fraud

What set this scam apart was its calculated, methodical approach. The fraudsters operated with patience and precision, fulfilling initial transactions to establish credibility. This slow-play strategy built trust within the investor community, making it easier to draw in larger sums as the operation progressed.

They targeted high-net-worth individuals and entities, knowing these investors were often looking for exclusive OTC deals to acquire large volumes of tokens without impacting the open market. By the time the scheme collapsed, the network had siphoned off over $50 million, making it one of the most damaging scams of 2025.

Implications for the Crypto Industry

The Telegram OTC scam has sent shockwaves through the cryptocurrency sector. It underscores the pressing need for greater transparency and due diligence in private crypto transactions, especially in an era where DeFi and peer-to-peer trades are increasingly common.

While blockchain technology itself offers traceability, the human element — including trust-based transactions in private chat groups — remains a vulnerable point. The case highlights how even experienced investors can fall prey to scams when due diligence is bypassed in favor of promised profits.

The incident also raises broader concerns about the role of unregulated OTC markets in the crypto space. Without proper oversight, these channels can become breeding grounds for fraudsters looking to exploit trust and anonymity.

Calls for Stronger Protections

Following the collapse of the scam, several industry figures have called for tighter security protocols for OTC trading, including more formal verification of counterparties, escrow services, and the use of smart contracts to automate and secure deals.

In the wake of the scandal, some firms are also urging Telegram and other messaging platforms to introduce stricter monitoring of groups advertising large-scale financial transactions. While decentralization and privacy are core to the crypto ethos, cases like this reveal the need to balance these values with mechanisms that can prevent large-scale fraud.

A Costly Lesson for Investors

What began as a seemingly trustworthy series of OTC token deals ended as a cautionary tale about the dangers of unchecked trust in private crypto transactions. The scam operated quietly but effectively, draining over $50 million before its abrupt collapse.

For the victims, the losses are not only financial but reputational as well. For the broader crypto community, the incident serves as a stark reminder: transparency, verification, and caution must always accompany opportunity in this rapidly evolving market.

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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