Fintoch, a decentralized finance (DeFi) protocol that offers peer-to-peer (P2P) lending and financing services, has absconded with $31.6 Million in digital currencies belonging to investors in an apparent exit scam.
Numerous tweets from Fintoch users complaining about being unable to withdraw their assets were seen on Twitter platform earlier today, confirming suspicions that the platform had disappeared with investors’ funds.
Fintoch Rug Pulls Users
Famous Web 3.0 expert and on-chain analyst ZachXBT announced the rug pull on Twitter platform late Tuesday, suggesting that the team behind Fintoch had scammed users on the Binance Crypto exchange Smart Chain (BSC).
Zach disclosed that Fintoch had transferred 31.6 Million worth of Tether (USDT) (USDT) to numerous addresses on the Tron and Ethereum (ETH) networks on May 22 around 12:58 pm UTC. The platform’s move caused panic between investors as they informed being unable to withdraw their assets.
Following Fintoch’s silence on the withdrawal issue, plenty of users flocked to the comment section of the platform’s last tweet, published on May 23, demanding an justification. Users who tried to reach out to the company via its customer support channel were greeted with automated responses.
A Ponzi Scheme?
Fintoch lured investors with the promise of a 1 percent daily return on financing (ROI) and states of affiliation with American multinational financing banking and financial services company Morgan Stanley.
Nonetheless, Morgan Stanley debunked any affiliations with Fintoch, explaining that it had no relationship with the Decentralized Finance protocol, which used its trademark without authorization. The multinational company distanced itself from any responsibility pertaining to transactions or results that would arise from Fintoch.
In addition, the Central Bank of Singapore (MAS) added Fintoch to its Investor Alert List earlier these 30 days. The list contained corporations that “may have been wrongly perceived as being licensed or in any other way authorized or regulated by MAS.”
In the meantime, Zach claimed that Bob Lambert, the CEO of Fintoch – as stated on the platform’s website – does not exist and is a paid actor.