DeFi Lending Protocol Fintoch Reportedly Rug Pulls Investors for $31.6M

Read full article at CryptoPotato.

Fintoch, a decentralized finance (DeFi) protocol that offers peer-to-peer (P2P) lending and investment services, has absconded with $31.6 million in cryptocurrencies belonging to investors in an apparent exit scam.

Multiple tweets from Fintoch users complaining about being unable to withdraw their assets were seen on Twitter earlier today, confirming suspicions that the platform had vanished with investors’ funds.

Fintoch Rug Pulls Users

Famous Web3 expert and on-chain analyst ZachXBT announced the rug pull on Twitter late Tuesday, suggesting that the team behind Fintoch had scammed users on the Binance Smart Chain (BSC).

Zach disclosed that Fintoch had transferred 31.6 million worth of Tether (USDT) to multiple addresses on the Tron and Ethereum networks on May 22 around 12:58 pm UTC. The platform’s move caused panic among investors as they reported being unable to withdraw their assets.

Following Fintoch’s silence on the withdrawal issue, several users flocked to the comment section of the platform’s last tweet, published on May 23, demanding an explanation. 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% daily return on investment (ROI) and claims of affiliation with American multinational investment banking and financial services company Morgan Stanley.

However, Morgan Stanley debunked any affiliations with Fintoch, clarifying that it had no relationship with the DeFi protocol, which used its trademark without authorization. The multinational firm distanced itself from any responsibility pertaining to transactions or results that would arise from Fintoch.

Additionally, the Monetary Authority of Singapore (MAS) added Fintoch to its Investor Alert List earlier this month. The list contained firms that “may have been wrongly perceived as being licensed or in any other way authorized or regulated by MAS.”

Meanwhile, Zach argued that Bob Lambert, the CEO of Fintoch – as stated on the platform’s website – does not exist and is a paid actor.

The post DeFi Lending Protocol Fintoch Reportedly Rug Pulls Investors for $31.6M appeared first on CryptoPotato.

This article is strictly for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. does not provide investment, tax, legal, business or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any loss or damage caused or alleged to be caused by, or in connection with, the use of or reliance on any content, goods, services or opinions mentioned in this article.

#Bitcoin #Crypto #Cryptocurrency

Related articles

Iran to Permit Use of Cryptocurrencies in International Settlements, Reports Reveal

Read full article at Bitcoin News.Authorities in Iran are preparing to allow the employment of cryptocurrencies for international […]

Learn More

XRP Lawsuit: SEC deems Ripple arguments as “hollow” in Slack data dispute

Read full article at Coingape. The SEC is ceaselessly firing at Ripple after its long-held silence in the […]

Learn More

India Announces Upcoming Launch of Central Bank Digital Currency, Digital Rupee, to Be Issued by RBI

Read full article at Bitcoin News.The Indian government has announced the upcoming launch of the country’s central bank […]

Learn More