After saying it was connected to Morgan Stanley, a big international bank, the DeFi website disappeared with more than $30 million of its users’ money.
Fintoch is a decentralized finance (DeFi) protocol that gives peer-to-peer (P2P) lending and investment services. In what looks like an exit scam, they have stolen $31.6 million in cryptocurrencies from investors.
Earlier today, I saw multiple tweets from Fintoch users who were upset that they couldn’t remove their assets. This confirmed that the platform had disappeared with investors’ money.
Fintoch Rug Pulls Users
ZachXBT, a well-known Web3 expert and on-chain analyst, reported the rug pull on Twitter late Tuesday night. He suggested that the team behind Fintoch had scammed users on the Binance Smart Chain (BSC).
Zach said that on May 22, around 12:58 UTC, Fintoch had sent USDT worth $31.6 million to various addresses on the Tron and Ethereum networks. Investors were scared when the site changed because they couldn’t get their money out.
After Fintoch didn’t say anything about the withdrawal problem, many users went to the platform’s last tweet, which was posted on May 23, and asked for an explanation in the comments. When users tried to contact the company through its customer service channels, they got automated replies.
A Ponzi Scheme?
Fintoch promised investors a return on investment (ROI) of 1% per day and said it was connected to Morgan Stanley, an American global investment banking and financial services company.
Morgan Stanley, on the other hand, said that it had nothing to do with Fintoch and that it had nothing to do with the DeFi protocol, which used its brand without permission. The multinational company said that it would not be responsible for any transactions or effects that Fintoch would bring about.
Also, Fintoch was added to the Investor Alert List earlier this month by the Monetary Authority of Singapore (MAS). On the list were companies that may have been mistakenly thought to be licensed, authorized, or regulated by MAS in some way.
Zach, on the other hand, said that Bob Lambert, who is listed as the CEO of Fintoch on the website, does not exist and is just a paid actor.
