DeFi project Fintoch suspected of $31.6m fraud

The team behind the DeFi project Fintoch allegedly carried out an exit scam, withdrawing clients’ digital assets worth $31.6m, according to on-chain researcher ZachXBT.

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 withdraw

Fintoch advertised 1% daily ROI & claimed to be owned by Morgan Stanley pic.twitter.com/UD3KKfkG97

— ZachXBT (@zachxbt) May 23, 2023

Funds in USDT were moved from the BNB Chain to addresses on the Tron and Ethereum blockchains. Some users told the expert that they could not withdraw their money from Fintoch.

The U.S.-based company claimed to be owned by Morgan Stanley and promised a daily return on investment of 1%.

In recent months, Fintoch has held promotional events in Malaysia, South Korea and Dubai.

Thanks to Yahoo!Finance???https://t.co/W83sGMh5ho

— Morgan DF Fintoch (@DFintoch) May 18, 2023

ZachXBT believes the project was a Ponzi scheme. The site lists Bob Lambert as co-founder and CEO, who does not actually exist. His role was played by a hired actor.

The team page on the Fintoch website names “Bobby Lambert” as the CEO when in reality he does not exist and is a paid actor.

Previously both the Singapore Government and Morgan Stanley issued warnings about this investment scheme. pic.twitter.com/SLxvOCPj1s

— ZachXBT (@zachxbt) May 23, 2023

The researcher noted that Singapore authorities and Morgan Stanley had previously issued warnings about the investment scheme.

In May, the Swaprum decentralized exchange on the Arbitrum L2 network L2 network Arbitrum hidь with user assets totaling $3m, draining liquidity pools.