A dispute over a $1.4 million loss has gripped Crypto Twitter after a trader claimed to have been scammed in an over-the-counter (OTC) deal. Later, another account posted about depositing the exact same amount into KuCoin.
The sequence of posts has ignited confusion, suspicion, and speculation across the community.
SponsoredA $1.4 Million Scam Allegation
The controversy began when trader 0x_Leo_ shared the incident in a post on X (Twitter), calling for help from blockchain sleuths like ZachXBT.
“…just got scammed for 1.4mil on an OTC deal. They transferred money out to KuCoin. Can anyone from their team block this address, please? Zachxbt would love help if you can,” the alleged victim lamented.
On-chain data shows the transfer of 1.40 million USDC (≈ $1.399 million) on Ethereum from address 0x887e…d35260 to 0xd04d…41b8724. The transaction succeeded in block 23493672 about five hours ago (as of this writing), costing only $0.06 in fees.
OTC deals, or over-the-counter trades, bypass exchanges and rely on direct trust between counterparties. In this case, trader 0x_Leo_ alleged losing $1.4 million through such an arrangement, highlighting the risks of limited recourse when disputes arise in high-value peer-to-peer (P2P) crypto transactions.
This remark comes as OTC deals, private, P2P transactions conducted outside of exchanges, have long been regarded as high-risk, given the lack of guarantees or enforcement mechanisms in case of fraud.
The post quickly circulated, with followers urging Leo to share wallet details and contact KuCoin’s support team directly.
A Coincidental or Trolling Response?
Just two hours after the report, a pseudonymous trader going by based16z on X (Twitter) posted a seemingly unrelated but eerily timed message.
Sponsored“Just dropped $1.4M in KuCoin, what are we aping?” they chimed.
The overlap in amounts sparked immediate speculation. Some users suggested it was a brazen confession connected to Leo’s missing funds. Meanwhile, others dismissed it as trolling or a coincidence designed to stir chaos and farm engagement.
The juxtaposition of the two posts divided the community. One camp leaned toward viewing it as evidence of theft or a staged stunt, while another saw it as typical Crypto Twitter theater. In this space, irony, memes, and misinformation often blur with real financial stakes.
Nonetheless, the episode highlights the persistent risks in OTC crypto trading. Unlike centralized exchange transactions, OTC deals rely solely on trust between counterparties.
This makes them a fertile ground for disputes, scams, and situations where victims have little recourse beyond public appeals to exchanges or blockchain sleuths like ZachXBT.
SponsoredThe timing of the alleged scam and the KuCoin deposit claim has made this case particularly viral. Yet, as with many crypto controversies, clarity may be hard to come by without verifiable on-chain evidence.
At press time, neither 0x_Leo_, based16z, nor KuCoin immediately responded to BeInCrypto’s request for comment. However, ZachXBT told BeInCrypto that he would not investigate the case.
“I am not looking into the case,” ZachXBT articulated.
In hindsight, there appears to be some connection between Leo and based16z, with a close similarity between their individual posts on select tokens. On September 20, both accounts posted about Aster DEX, expressing bullish sentiment.
Before that, in mid-July, the two accounts also talked about PUMP meme coin, hinting at possible collusion. Notwithstanding, ZachXBT has called out the alleged victim for not providing fundamental details to prove their case.
“Why publicly tag me and do not at minimum provide any sort of basic details in DMs such as chat logs, transactions, etc?” ZachXBT challenged.
