Fintoch Allegedly Vanishes with $32M in User Funds

According to on-chain detective ZachXBT, a crypto project called Fintoch, which claimed to be backed by investment banking firm Morgan Stanley, appears to have fled with nearly $32 million of its users’ funds.

In a thread, the crypto sleuth illustrated the movement of the funds with a diagram. The chain-of-custody detective asserted that the project had likely perpetrated an exit scam.

The fund promised a 1% daily return on user investments. However, Fintoch users have reported that they can no longer withdraw their funds.

In addition, although the project claims to be owned by Morgan Stanley, the investment bank denied any connection to the project in a statement.

The company stated that Fintoch used its trademarks without permission and that it does not assume responsibility for any transactions with Fintoch.

Earlier in May, the Monetary Authority of Singapore (MAS) warned against Fintoch. According to MAS, the company “may have been mistakenly perceived as licensed, authorized, or regulated by MAS in any way.”

In addition, reports from March indicate that the image used for the company’s CEO, Bobby Lambert, is that of a paid actor named Mike Provenzano.

In other news, the Federal Bureau of Investigation (FBI) of the United States has issued a warning regarding a recent increase in fraudulent crypto job postings.

On May 23, the FBI cautioned U.S. citizens and individuals residing or traveling abroad to remain vigilant, as these deceptive advertisements are frequently linked to human trafficking.

In April, there was a continued increase in crypto exploits, exit scams, and flash loan attacks in the cryptocurrency space.

According to blockchain security company CertiK, over $103 million was stolen from cryptocurrency projects and investors during the month.