3 - 4 minute read
A crypto project named Fintoch, which promised a daily return of 1% and claimed to be backed by investment banking company Morgan Stanley, is allegedly involved in an exit scam. On-chain detective ZachXBT reported that the project had made off with almost $32 million of investors’ funds after the funds were bridged to multiple addresses on Tron/Ethereum and users found themselves unable to withdraw. Furthermore, Morgan Stanley denied any ties with Fintoch, stating that the company had used its trademarks without authorization and that they do not assume any responsibility for transactions with the company. The Monetary Authority of Singapore (MAS) also issued an alert against Fintoch earlier in May, as the company “may have been wrongly perceived as being licensed or in any other way authorized or regulated by MAS.”
It appears the team behind the ponzi @DFintoch has likely exit scammed with 31.6m USDT on BSC after the funds were bridged to multiple addresses on Tron/Ethereum and— ZachXBT (@zachxbt) May 23, 2023
people reported being unable to withdraw
Fintoch advertised 1% daily ROI & claimed to be owned by Morgan Stanley pic.twitter.com/UD3KKfkG97
Reports from March suggest that the image used for the CEO of the company, Bobby Lambert, actually belongs to a paid actor named Mike Provenzano. This news comes amid a surge in fraudulent crypto job advertisements, with the Federal Bureau of Investigation (FBI) issuing a warning regarding these deceptive ads, often associated with labor trafficking.
The crypto space has experienced a continued surge in crypto exploits, exit scams, and flash loan attacks, with over $103 million in funds stolen from various crypto projects and investors in April alone, according to blockchain security firm Certik. As US enforcement agencies turn up the heat on crypto-related crime, it is crucial for traders to exercise caution and carry out thorough research before investing in any project.
The Bottom Line
The alleged exit scam involving Fintoch serves as a reminder to traders of the importance of conducting thorough research and due diligence before investing in any project, especially those promising high returns. The surge in crypto-related fraudulent activities highlights the need for traders to remain vigilant and cautious, verifying the legitimacy of any investment opportunity, checking regulation status, and reviewing the background of the team behind the project.