- $1.40 million USDC moved on Ethereum.
- The group is break up between fraud issues and trolling theories.
- ZachXBT acknowledged he wouldn’t examine the case, criticising the shortage of proof offered by the alleged sufferer.
A dispute over $1.4 million has set off heated dialogue on Crypto Twitter after a dealer 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 hypothesis, with the crypto group debating whether or not the 2 incidents are linked or if the second publish was a trolling try.
The case underscores the delicate nature of OTC transactions in crypto, the place belief is essential however troublesome to implement.
OTC buying and selling dangers in focus after $1.4 million switch
The controversy started when dealer 0x_Leo_ shared a post on X (Twitter), saying they’d misplaced $1.4 million in an OTC deal.
They referred to as on blockchain investigator ZachXBT and urged KuCoin to dam the vacation spot tackle.
On-chain data present that 1.40 million USDC (≈ $1.399 million) was moved on Ethereum from tackle 0x887e…d35260 to 0xd04d…41b8724.
The switch was confirmed in block 23493672 and value simply $0.06 in charges.
OTC offers, carried out privately outdoors centralised exchanges, stay widespread for high-value trades.
However 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 hypothesis
Simply two hours after the rip-off allegation, an account beneath the identify based16z posted,
Simply dropped $1.4M in KuCoin, what are we aping?
The overlap in worth between the 2 posts triggered hypothesis throughout the group.
Some steered it may very well be related to the lacking funds, whereas others noticed it as a coincidence or an try and farm engagement by capitalising on the viral story.
The sequence of occasions sparked additional division amongst customers.
Whereas one group believed the posts may be linked, others dismissed them for example of Crypto Twitter’s mixture of irony, memes, and misinformation.
In both case, the episode has amplified issues over transparency in non-public crypto offers.
Blockchain sleuth declines involvement
Regardless of being tagged, ZachXBT acknowledged he wouldn’t examine the case, criticising the shortage of proof offered by the alleged sufferer.
He stated no chat logs or transaction particulars had been shared privately, elevating doubts in regards to the account’s declare.
The shortage of follow-up data has left the case unresolved, including to confusion throughout the group.
With out clear on-chain proof or alternate affirmation, linking the 2 posts stays speculative.
Previous hyperlinks between the 2 accounts increase questions
Additional scrutiny revealed some overlap in exercise between 0x_Leo_ and based16z.
Each accounts had posted about Aster DEX on September 20, exhibiting bullish sentiment.
Additionally they commented on the PUMP meme coin in mid-July, elevating questions on whether or not their interplay was coincidental or steered some stage of collusion.
At current, there was no official remark from KuCoin, nor any proof that the funds reported misplaced had been immediately related to the $1.4 million deposit declare.
The incident stays unresolved, leaving many locally unsure whether or not this was a rip-off, a staged stunt, or just a poorly timed coincidence.