Crypto Analyst Warns of Alleged $31.6 Million Rug Pull by Fintoch
ZachXBT, a renowned crypto analyst, recently alerted his followers on Twitter about a probable exit scam by the team behind Fintoch. According to the analyst, the team appears to have absconded with 31.6 million USDT on the Binance Smart Chain (BSC) after the funds were transferred to several addresses on Tron and Ethereum blockchains.
Users have reported being unable to withdraw their funds from the platform. Fintoch, which promised a daily ROI of 1% and alleged ownership by Morgan Stanley, is now under scrutiny. Notably, Morgan Stanley has issued a warning against associating with the platform and has denied any affiliations with Fintoch.
Furthermore, the name "Bobby Lambert", listed as the CEO of Fintoch on the company’s website, seems to be fictitious. ZachXBT suggests that the person presented as the CEO is a paid actor.
Morgan Stanley has issued an important notice, warning the public about digital platforms like Fintoch impersonating the company without authorization. The company advises clients and the general public to treat such investment offers with suspicion and to refrain from sharing personal or financial information unless they're very certain of the recipient's identity.
Both the Singapore Government and Morgan Stanley had previously warned against investing in this scheme. The Singapore Monetary Authority (MAS) included Fintoch in its alert list.
Regrettably, it seems that these investment fraud schemes often target communities lacking financial literacy.
A 'rug pull' is a type of scam where developers abandon a project and run away with investors' funds. The term is derived from the phrase 'pull the rug out from under someone', meaning to suddenly and unexpectedly deprive someone of a crucial support or advantage. It's a significant issue in the world of decentralized finance (DeFi) where projects can be launched by anonymous developers.