Layer-1 blockchain Self Chain announced that it has terminated its CEO Ravindra Kumar after allegations of a $50 million over-the-counter (OTC) scam.
The allegations broke on Friday with claims that Kumar was involved in a string of OTC scams including firms such as Aza Ventures, which published the allegations on Telegram.
Kumar responded at the time by posting: “I’ve been accused of serious wrongdoing, which is completely false. My legal team and I are working on a statement to address this matter. Stay tuned for updates.”
An OTC transaction is one that takes place outside of an exchange in order to avoid slippage on larger transactions. It often involves the buyer, seller and a middleman brokering the deal.
The Self Chain token (SLF), which trades on Binance, is now down by 35.9% in the past week after selling off in relation to the allegations.
“Ravindra Kumar’s role as CEO has been formally terminated,” Self Chain wrote in a Monday tweet. “He will no longer hold any position, responsibility, or association with Self Chain in any capacity going forward.”
No Self Chain founding members have ever been authorized to engage in OTC deals involving $SLF,” it continued. “Any other deals circulating in the market have not been officially approved or sanctioned by the team in any way whatsoever.”
Kumar retweeted Self Chain’s tweet and removed reference to himself as CEO from his profile.