Crypto trader claims $1.4 million lost in OTC rip-off, KuCoin deposit stirs speculation
$1.40 million USDC moved on Ethereum.
The group is break up between fraud considerations and trolling theories.
ZachXBT acknowledged he wouldn’t examine the case, criticising the dearth of proof supplied by the alleged sufferer.
A dispute over $1.4 million has set off heated dialogue on Crypto Twitter after a trader reported being scammed in an over-the-counter (OTC) deal, just for one other account to later announce depositing the very same quantity into KuCoin.
The timing and similarity of the quantities have triggered a wave of speculation, with the crypto group debating whether or not the 2 incidents are linked or if the second put up was a trolling try.
The case underscores the delicate nature of OTC transactions in crypto, the place belief is vital however tough to implement.
OTC buying and selling dangers in focus after $1.4 million switch
The controversy started when trader 0x_Leo_ shared a put up on X (Twitter), saying they’d lost $1.4 million in an OTC deal.
They known as on blockchain investigator ZachXBT and urged KuCoin to dam the vacation spot handle.
On-chain data present that 1.40 million USDC (≈ $1.399 million) was moved on Ethereum from handle 0x887e…d35260 to 0xd04d…41b8724.
The switch was confirmed in block 23493672 and price simply $0.06 in charges.
OTC offers, carried out privately exterior centralised exchanges, stay common for high-value trades.
But with out authorized recourse or built-in ensures, they’re susceptible to fraud and disputes.
This incident has highlighted the restricted safety merchants face when such transactions go flawed.
KuCoin deposit declare heightens speculation
Just two hours after the rip-off allegation, an account underneath the title based16z posted,
Just dropped $1.4M in KuCoin, what are we aping?
The overlap in worth between the 2 posts triggered speculation throughout the group.
Some advised it could possibly be linked to the lacking funds, whereas others noticed it as a coincidence or an try to farm engagement by capitalising on the viral story.
The sequence of occasions sparked additional division amongst customers.
While one group believed the posts could be linked, others dismissed them for example of Crypto Twitter’s mixture of irony, memes, and misinformation.
In both case, the episode has amplified considerations over transparency in non-public crypto offers.
Blockchain sleuth declines involvement
Despite being tagged, ZachXBT acknowledged he wouldn’t examine the case, criticising the dearth of proof supplied by the alleged sufferer.
He mentioned no chat logs or transaction particulars have been shared privately, elevating doubts in regards to the account’s declare.
The lack of follow-up info has left the case unresolved, including to confusion throughout the group.
Without clear on-chain proof or trade affirmation, linking the 2 posts stays speculative.
Past hyperlinks between the 2 accounts elevate questions
Further scrutiny revealed some overlap in exercise between 0x_Leo_ and based16z.
Both accounts had posted about Aster DEX on September 20, displaying bullish sentiment.
They additionally commented on the PUMP meme coin in mid-July, elevating questions on whether or not their interplay was coincidental or advised some stage of collusion.
At current, there was no official remark from KuCoin, nor any proof that the funds reported lost have been immediately linked to the $1.4 million deposit declare.
The incident stays unresolved, leaving many in the group unsure whether or not this was a rip-off, a staged stunt, or just a poorly timed coincidence.
