$1.40 million USDC moved on Ethereum.
The group is cut up between fraud considerations and trolling theories.
ZachXBT said 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 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 put up 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 put up on X (Twitter), saying that they had misplaced $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 value simply $0.06 in charges.
OTC offers, carried out privately outdoors centralised exchanges, stay fashionable 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 below 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 instructed it could possibly be linked 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 is perhaps 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 personal crypto offers.
Blockchain sleuth declines involvement
Regardless of being tagged, ZachXBT said 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 concerning the account’s declare.
The shortage of follow-up data has left the case unresolved, including to confusion inside the group.
With out clear on-chain proof or change affirmation, linking the 2 posts stays speculative.
Previous hyperlinks between the 2 accounts elevate 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 instructed some stage of collusion.
At current, there was no official remark from KuCoin, nor any proof that the funds reported misplaced have been immediately linked to the $1.4 million deposit declare.
The incident stays unresolved, leaving many in the neighborhood unsure whether or not this was a rip-off, a staged stunt, or just a poorly timed coincidence.
