The post Crypto trader claims $1.4 million lost in OTC scam, KuCoin deposit stirs speculation appeared on BitcoinEthereumNews.com.

$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…

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Filed under: News - @ October 3, 2025 11:28 am