• Fintoch, a DeFi protocol offering P2P lending and investment services, has allegedly scammed investors for $31.6 million in cryptocurrency.
• The platform transferred 31.6 million USDT to multiple addresses on the Tron and Ethereum networks, leaving investors unable to withdraw their assets.
• Users had been lured by Fintoch’s false claim of being affiliated with multinational banking giant Morgan Stanley.
DeFi Lending Protocol Fintoch Steals Millions from Investors
A decentralized finance (DeFi) protocol offering peer-to-peer (P2P) lending and investment services has pulled a rug scam on unsuspecting investors, stealing over $30M worth of cryptocurrencies in the process.
Alleged Affiliation with Morgan Stanley
Fintoch had falsely claimed to be affiliated with multinational banking giant Morgan Stanley, luring investors into investing their funds on its platform. Unfortunately for these users, their money was sent to multiple addresses on the Tron and Ethereum networks shortly after they invested it – leaving them unable to access it anymore.
Panic as Users Unable to Withdraw Funds
The sudden disappearance of Fintoch caused panic among users who flooded the comment section of its last tweet demanding an explanation – only to receive automated responses from customer support. On-chain analyst ZachXBT announced the rug pull on Twitter late Tuesday afternoon, confirming that 31.6 million worth of Tether (USDT) had been stolen by Fintoch’s developers.
Beware of False Claims & Exit Scams
This story serves as a reminder for all DeFi users that no matter how attractive an offer may seem, you should always research thoroughly before investing your money anywhere – especially if any claims or affiliations seem too good to be true! Be aware that exit scams are still common within crypto space and you should invest responsibly at all times in order to avoid such risks as much as possible.
Conclusion
In conclusion, Fintoch’s rug pull is yet another example of why extra caution must be taken when investing in cryptocurrency projects – even if they come with false promises or claims of affiliation with established companies such as Morgan Stanley!