Morgan DF Fintoch: Massive $32 Million Exit Scam Shakes Investor Confidence

By 0xGorki 05/24/23 2:45 PM

In a shocking turn of events, the relatively unknown cryptocurrency project known as DF Fintoch has seemingly vanished into thin air, taking with it an estimated $32 million of user funds. The project, which claimed to be affiliated with Morgan Stanley and promised investors a daily return of 1% on their investments, now appears to be nothing more than an elaborate exit scam.

Crypto investigator ZachXBT recently uncovered the dubious practices employed by DF Fintoch, shedding light on the deceitful tactics employed by the project’s operators. It was revealed that the project referred to itself as “Morgan DF Fintoch,” attempting to exploit the reputation and credibility of the renowned financial institution. However, Morgan Stanley promptly issued a statement clarifying that they had no affiliation with the project whatsoever.

It appears the team behind the ponzi @DFintoch has likely exit scammed with 31.6m USDT on BSC after the funds were bridged to multiple addresses on Tron/Ethereum and
people reported being unable to withdraw

Fintoch advertised 1% daily ROI & claimed to be owned by Morgan Stanley pic.twitter.com/UD3KKfkG97

— ZachXBT (@zachxbt) May 23, 2023

Further investigation by ZachXBT also unveiled that the project falsely presented its CEO as an individual named Bob Lambert, displaying a picture of the actor Mike Provenzano as his alleged identity. These deceptive measures were employed to build trust among potential investors and create an illusion of legitimacy.

The distressing aftermath of DF Fintoch’s disappearance has left numerous investors unable to access or withdraw their funds. Reports from multiple sources indicate that user deposits were transferred from the Binance Smart Chain to two other blockchains, Ethereum and Tron. This complex maneuver effectively made it difficult to trace and recover the misappropriated funds, adding to the frustrations felt by those affected.

The magnitude of the scam becomes evident when considering the substantial following DF Fintoch had managed to amass on Twitter, boasting a staggering 71,000 followers. Additionally, the project claims to have over 138,000 token holders, a significant number of individuals who are now presumed to be victims of this fraudulent scheme.

The Monetary Authority of Singapore, recognizing the severity of the situation, took immediate action by adding DF Fintoch’s website to its investor alert list. This move serves as a warning to potential investors and highlights the need for greater vigilance and due diligence when participating in the cryptocurrency market.

The DF Fintoch exit scam serves as a painful reminder of the risks associated with investing in lesser-known crypto projects. As the popularity of cryptocurrencies continues to rise, it is crucial for investors to exercise caution, thoroughly research any project they intend to invest in, and seek guidance from reputable sources.

Regulators and law enforcement agencies must also remain vigilant, swiftly investigating and taking action against fraudulent schemes to protect unsuspecting investors. In an industry known for its decentralization and lack of regulation, efforts to combat scams and protect users are of utmost importance to maintain the integrity and trust within the crypto ecosystem.

As affected individuals and authorities scramble to recover the lost funds and bring the perpetrators to justice, the DF Fintoch exit scam serves as a stark reminder that investors must exercise caution and skepticism when navigating the ever-evolving landscape of cryptocurrencies.

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