The operators of the decentralized finance (DeFi) platform Fintoch have allegedly carried out an exit scam, stealing cryptocurrencies worth $31.6 million from their investors.
Recent months have seen several scandals surrounding the platform, such as false claims of support from financial giant Morgan Stanley, which the corporation had to refute in a rare press release. Fintoch also falsely reported having a license from the Monetary Authority of Singapore, which the authority quickly denied. The company was also accused of using images of a hired actor as the photo of its CEO on the official website.
Blockchain researcher ZachXBT has now revealed that the company has gone into hiding with all the funds of its customers, who are reporting en masse that they cannot withdraw their money. He also published detailed data showing the movement of stolen assets.
Fintoch, which promised investors a daily return on investment of 1%, has been exposed as a Ponzi scheme. Funds have been withdrawn from the BNB Chain network to several addresses on the Tron and Ethereum blockchains, and then distributed to various deposits on exchanges such as Binance and Huione.
