Fintoch DeFi project team steal $31,6 million from its users

The platform promised a 1% daily return and claimed to be owned by Morgan Stanley

24.05.2023 - 09:15

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3 min

What’s new? The developers of the Fintoch DeFiproject performed an exit scam, absconding with $31,6 million in user deposits, a sleuth under the nickname ZachXBT reported. According to him, the team transferred 31,6 million Tether (USDT) stablecoins to several addresses on TRONand Ethereum networks and withdrew them to BNB Smart Chain (BSC), after which customers of the platform began to report that they could not withdraw funds.

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 andpeople 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

What is known about the project? Fintoch promised a 1% daily return and claimed to be owned by financial conglomerate Morgan Stanley. The team’s page on the project website lists a certain Bob Lambert as the CEO, who, according to ZachXBT, is actually an actor named Mike Provenzano. According to his profile page on the IMDb movie website, he has appeared in numerous commercials, short films, and episodes of TV shows.

Notably, Morgan Stanley previously denied any connection to the project. The Monetary Authority of Singapore (MAS) also issued its own warning, stating that Fintoch does not have a license from the regulator, but falsely claims to have one. The project’s website and social media pages are still available at the time of writing.

According to ZachXBT, despite all the warnings, some crypto users lack financial literacy, so they are often the target of investment fraud schemes.

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In April, the team of the decentralized exchange (DEX) Merlin revealed the involvement of its own staff in a hack that caused more than $1,82 million in damages. In May, DEX Swaprum developers carried out a $3 million exit scam.

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