A crypto project called Fintoch, which claimed to be backed by the investment banking firm Morgan Stanley, appears to have disappeared with nearly $32 million of its user funds, according to on-chain detective ZachXBT.
In one thread, the cryptocurrency detective showed a diagram detailing the movement of funds. The on-chain detective alleged that the project had likely run an exit scam.
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
people reported being unable to withdrawFintoch advertised 1% daily ROI & claimed to be owned by Morgan Stanley pic.twitter.com/UD3KKfkG97
— ZachXBT (@zachxbt) May 23, 2023
The fund promised 1% daily interest on user investments. However, users of the platform have started to report who are now unable to withdraw their funds from Fintoch.
In addition to this, although the project claims to be owned by Morgan Stanley, the investment banking firm denied any link to the project through a statement. The firm said Fintoch was using its trademarks without authorization and said it does not take any responsibility for transactions with the company.
The Monetary Authority of Singapore (MAS) also issued an alert against Fintoch in early May. According to MAS, the company “may have been misperceived as licensed or otherwise regulated by MAS.”
Apart from this, reports from March suggest that the image used for the company’s CEO, named Bobby Lambert, actually belongs to an actor for hire whose real name is Mike Provenzano.
In other news, the Federal Bureau of Investigation (FBI) has issued a warning about a recent spike in fraudulent job postings in the cryptocurrency space. On May 23, the FBI advised US citizens and people living or traveling abroad to be careful, as these deceptive ads are often associated with labor trafficking.
In April, the crypto space saw a continued rise in cryptocurrency exploits, exit scams, and flash loan attacks. According to blockchain security firm Certik, more than $103 million in funds were stolen from various crypto projects and investors in the month.
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