Morgan DF Fintoch goes radio silent after rugging $31.6M

Crypto investment platform Morgan DF Fintoch allegedly stole $31.6 million worth of user funds in an apparent exit scam on May 22, on-chain sleuth Zachxbt reported May 24.

On-chain data shows the funds — mainly USDT on BSC — were bridged to multiple addresses on TRON and Ethereum during the afternoon of May 22 — giving rise to suspicions that the project has rugged its users.

 

Users began complaining about being unable to withdraw their funds on May 23. However, the company has yet to respond publicly. Its last tweet was a Youtube video about launching the FINTOCH FTC Public chain in Dubai on May 23.

CryptoSlate was unable to reach Fintoch for comment as of press time.

Fake claims

Coincidentally, DFintoch was launched on May 24, 2022, and advertised itself as a U.S. crypto investment platform offering returns on investments of up to 1% on a daily basis — or 365% annually.

The ROI was magnitudes greater than any legitimate ROI offered in the crypto industry at the time — or since — with most exchanges offering ROIs of up to 4% annually in most jurisdictions at most.

The company also claimed to be backed by U.S. banking giant Morgan Stanley. However, the Wall Street lender has since publicly stated that it has no ties to Fintoch and that the project was using the bank’s logos and branding without permission.

 

A deeper dive into its team revealed that the company’s CEO Bob Lambert is not a real person and is actually a paid actor called Mike Provenzano.

CryptoSlate was unable to reach Provenzano for comment as of press time. It is unclear whether the actor was paid for his photos or if they were used without permission.

Meanwhile, the video promoting Fintoch Chain’s launch claims the UAE royal family was present at the event. However, there is no evidence or indication that the UAE government or royal family is involved with the project in any way.

Furthermore, the Singaporean markets watchdog recently issued a warning about the company and said it was falsely claiming to have secured the regulator’s approval to operate in the country.

 

It warned investors to immediately cease all activities and transactions with the platform.