Crypto Project Fintoch Exits with $31.6M in Alleged Scam
ZachXBT, an on-chain detective, reports that a crypto project called Fintoch, which purported to be backed by investment banking firm Morgan Stanley, appears to have fled with nearly $32 million of its users' funds.
In a thread, the crypto investigator illustrated the movement of the funds with a diagram. The chain-of-custody detective asserted that the project had likely perpetrated an exit fraud.
The fund promised a 1% daily return on user investments. However, Fintoch users have reported that they can no longer withdraw their funds.
Additionally, although the project claims to be owned by Morgan Stanley, the investment banking firm denied any affiliation with the project in a statement.
The company stated that Fintoch used its trademarks without permission and that it does not assume responsibility for any transactions with Fintoch.
The Monetary Authority of Singapore (MAS) warned against Fintoch earlier in May.
According to MAS, the company “may have been mistakenly perceived as licensed, authorized, or regulated by MAS in any way.”
In addition, reports from March indicate that the image used for the company's CEO, Bobby Lambert, is that of a paid actor named Mike Provenzano.
In other news, the Federal Bureau of Investigation (FBI) has warned about a recent increase in fraudulent crypto job postings.
On May 23, the FBI cautioned U.S. citizens residing or travelling abroad to remain vigilant, as these deceptive advertisements are frequently associated with human trafficking.
In April, there was a sustained increase in crypto exploits, exit scams, and flash loan attacks in the crypto space.
According to blockchain security company Certik, over $103 million was stolen from various cryptocurrency initiatives and investors in the past month.
