DeFi Platform Fintoch Disappears With $31.6M in Exit Scam

After promising a 1% daily return on investment (ROI) and allegedly being owned by Morgan Stanley, the team behind decentralized finance (DeFi) protocol Fintoch has pulled an exit scam, leaving investors to scratch their heads in losses.

Fintoch Steals $31.6M from Investors

The team disappeared with $31.6 million worth of USDT on the Binance Smart Chain (BSC) as users tried to withdraw their assets, according to an alert by well-known on-chain sleuth ZachXBT. 

The funds were bridged to multiple addresses on Tron and Ethereum, leading many to believe that the team has no plans to return the money.

Fintoch claimed to be owned by the multinational investment bank Morgan Stanley, but the platform had no evidence to support such claims. Additionally, the team page on the Fintoch website named “Bobby Lambert” as the CEO, who was later found to be a paid actor and does not exist.

Before now, the Singapore government and Morgan Stanley have issued warnings about the platform’s offerings, as they are regarded as Ponzi schemes that lure investors with the promise of high returns, only to leave them without any returns in the end.

The specifics of how the alleged exit scam was carried out are not yet clear. However, with the stolen funds intentionally transferred to multiple addresses on both the Tron and Ethereum blockchains, it could be a deliberate action made to make it challenging for anyone to track and retrieve the missing assets.

Investors Should Take Caution

Fintoch investors are now grappling with the harsh reality of being victims of an exit scam and facing huge financial losses. They have been urged to report the incident to the authorities and seek legal recourse if possible. 

The incident serves as a warning to investors to be vigilant and do their due diligence before investing their hard-earned money in such schemes.

It is essential to understand the risks and potential fraud scenarios, including exit scams like what happened with Fintoch. Additionally, investors should be cautious of high-return promises or pressure to invest quickly or large amounts of money. Lastly, it is crucial to choose reputable cryptocurrency exchanges and trading platforms.