• Fintoch, a decentralized finance (DeFi) protocol that offers peer-to-peer (P2P) lending and investment services, has disappeared with over $30M of users’ assets in an apparent exit scam.
• The platform claimed to be affiliated with multinational banking giant Morgan Stanley, and lured investors with promises of high returns.
• Users reported being unable to withdraw their assets after Fintoch transferred 31.6 million worth of Tether (USDT) to multiple addresses on the Tron and Ethereum networks.
DeFi Lending Protocol Fintoch Reportedly Rug Pulls Investors for $31.6M
Fintoch Scam Revealed
The DeFi platform Fintoch has disappeared with over $30M of users’ assets after claiming it was affiliated with multinational banking giant Morgan Stanley. Famous Web3 expert and on-chain analyst ZachXBT announced the rug pull via Twitter late Tuesday, suggesting that the team behind Fintoch had scammed users on the Binance Smart Chain (BSC). It is believed that 31.6 million worth of Tether (USDT) was transferred to multiple addresses on the Tron and Ethereum networks by Fintoch on May 22 around 12:58 pm UTC, causing investors to panic as they were unable to withdraw their assets from the platform.
False Promises of High Returns
Fintech had lured investors with promises of high returns due to its alleged affiliation with Morgan Stanley. Users who tried to reach out for help via customer support channel were met with automated responses. The disappearance of funds has left many defrauded investors angry at being taken advantage so easily by false claims from a DeFi platform they thought was trustworthy due its purported association with a major banking institution like Morgan Stanley.
Reactions From Crypto Community
The crypto community has reacted swiftly in response to news about Fintoch’s rug pull scam, urging people not to trust any project just because it is associated with a big brand or company name as this does not guarantee legitimacy; proper research must be done before investing in any project or protocol regardless of its perceived trustworthiness.
Implications For DeFi Space
This incident is likely going to have serious implications for the entire DeFi space moving forward as it could potentially lead more regulators getting involved in monitoring projects operating within this space closely if similar scams continue happening at this scale in future without punishment for those responsible for them.
As news about Fintech’s rugpull becomes public knowledge, more caution should be exercised when investing into projects or protocols linked to big brand names without properly researching them first – no matter how trustworthy they may appear initially – as there are still some malicious actors present in this space who will take advantage of unsuspecting investors if given opportunity too do so.