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Fintoch, a decentralized finance (DeFi) protocol providing peer-to-peer (P2P) lending and investment services, has reportedly absconded with $31.6 million in cryptocurrencies belonging to its investors in what appears to be an exit scam.
Numerous tweets from Fintoch users expressing their inability to withdraw their funds were observed on Twitter earlier today, reinforcing concerns that the platform had disappeared with the investors’ money.
Fintoch Pulls the Rug from Users
Noted Web3 expert and on-chain analyst ZachXBT revealed the rug pull on Twitter late Tuesday, indicating that the team behind Fintoch had deceived users on the Binance Smart Chain (BSC).
Zach reported that Fintoch had moved 31.6 million worth of Tether (USDT) to various addresses on the Tron and Ethereum networks on May 22 at approximately 12:58 pm UTC. This action triggered alarm among investors as they reported difficulties in withdrawing their assets.
In light of Fintoch’s lack of communication regarding the withdrawal situation, numerous users inundated the comment section of the platform’s most recent tweet, posted on May 23, seeking clarification. Users attempting to contact the company through its customer support channel received automated replies.
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A Potential Ponzi Scheme?
Fintoch attracted investors by promising a 1% daily return on investment (ROI) and claiming to be affiliated with the American multinational investment banking and financial services firm Morgan Stanley.
However, Morgan Stanley refuted any connections with Fintoch, stating that it had no association with the DeFi protocol, which had used its trademark without permission. The multinational corporation distanced itself from any liability related to transactions or outcomes stemming from Fintoch.
Furthermore, the Monetary Authority of Singapore (MAS) included Fintoch on its Investor Alert List earlier this month. This list features firms that “may have been mistakenly perceived as being licensed or otherwise authorized or regulated by MAS.”
Meanwhile, Zach contended that Bob Lambert, the CEO of Fintoch – as claimed on the platform’s website – does not exist and is merely a hired actor.
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