- $1.40 million USDC moved on Ethereum.
- The community is split between fraud concerns and trolling theories.
- ZachXBT stated he would not investigate the case, criticising the lack of evidence provided by the alleged victim.
A dispute over $1.4 million has set off heated discussion on Crypto Twitter after a trader reported being scammed in an over-the-counter (OTC) deal, only for another account to later announce depositing the exact same amount into KuCoin.
The timing and similarity of the amounts have triggered a wave of speculation, with the crypto community debating whether the two incidents are linked or if the second post was a trolling attempt.
The case underscores the fragile nature of OTC transactions in crypto, where trust is critical but difficult to enforce.
OTC trading risks in focus after $1.4 million transfer
The controversy began when trader 0x_Leo_ shared a post on X (Twitter), saying they had lost $1.4 million in an OTC deal.
They called on blockchain investigator ZachXBT and urged KuCoin to block the destination address.
On-chain records show that 1.40 million USDC (≈ $1.399 million) was moved on Ethereum from address 0x887e…d35260 to 0xd04d…41b8724.
The transfer was confirmed in block 23493672 and cost just $0.06 in fees.
OTC deals, carried out privately outside centralised exchanges, remain popular for high-value trades.
But without legal recourse or built-in guarantees, they are prone to fraud and disputes.
This incident has highlighted the limited protection traders face when such transactions go wrong.
KuCoin deposit claim heightens speculation
Just two hours after the scam allegation, an account under the name based16z posted,
Just dropped $1.4M in KuCoin, what are we aping?
The overlap in value between the two posts triggered speculation across the community.
Some suggested it could be connected to the missing funds, while others saw it as a coincidence or an attempt to farm engagement by capitalising on the viral story.
The sequence of events sparked further division among users.
While one group believed the posts might be linked, others dismissed them as an example of Crypto Twitter’s mix of irony, memes, and misinformation.
In either case, the episode has amplified concerns over transparency in private crypto deals.
Blockchain sleuth declines involvement
Despite being tagged, ZachXBT stated he would not investigate the case, criticising the lack of evidence provided by the alleged victim.
He said no chat logs or transaction details were shared privately, raising doubts about the account’s claim.
The lack of follow-up information has left the case unresolved, adding to confusion within the community.
Without clear on-chain evidence or exchange confirmation, linking the two posts remains speculative.
Past links between the two accounts raise questions
Further scrutiny revealed some overlap in activity between 0x_Leo_ and based16z.
Both accounts had posted about Aster DEX on September 20, showing bullish sentiment.
They also commented on the PUMP meme coin in mid-July, raising questions about whether their interaction was coincidental or suggested some level of collusion.
At present, there has been no official comment from KuCoin, nor any evidence that the funds reported lost were directly connected to the $1.4 million deposit claim.
The incident remains unresolved, leaving many in the community uncertain whether this was a scam, a staged stunt, or simply a poorly timed coincidence.