A recent investigation by on-chain detective ZachXBT has revealed alarming details about a crypto project called Fintoch, which claimed to be backed by investment banking firm Morgan Stanley. According to ZachXBT, the project has likely exit scammed, taking with it nearly $32 million of funds from its users. Fintoch promised a daily interest rate of 1% on deposits made to its platform. However, claims have surfaced from users that they are now unable to withdraw their deposited funds.
The alleged scam has raised eyebrows about the project’s actual association with Morgan Stanley. Contrary to what Fintoch claims, the prestigious investment bank has reportedly denied any ties with the company and has further stated that Fintoch used its trademarks without authorization. The bank has also made it clear that they do not take responsibility for transactions related to the project.
Furthermore, the Monetary Authority of Singapore (MAS) had also issued a warning against Fintoch earlier in May, stating that the company “may have been wrongly perceived as being licensed or in any other way authorized or regulated by MAS.”
In another shocking revelation, reports in March indicated that the image used for the CEO of Fintoch, Bobby Lambert, was actually that of a paid actor named Mike Provenzano. Considering these questionable claims, it is crucial that investors remain cautious while dealing with such crypto projects.
On the flip side, the crypto industry has experienced a continuous upsurge in frauds, exit scams, and flash loan attacks. In April alone, blockchain security firm Certik reported that over $103 million in funds were stolen from crypto investors and projects.
The recent surge in fraudulent activities in the crypto market has prompted the Federal Bureau of Investigation (FBI) to issue warnings against deceptive job advertisements associated with labor trafficking. The FBI has urged US citizens and individuals traveling or residing abroad to exercise caution when dealing with suspicious job ads, especially those related to the crypto market.
In conclusion, the perplexing case of Fintoch serves as a reminder to the crypto community about the ongoing risks in the digital currency space. While blockchain technology and digital assets hold tremendous potential for the future, the need for vigilance remains constant. Exercising prudence while engaging with crypto projects and staying informed about potential red flags can help avoid falling prey to such scams.
Source: Cointelegraph
