Bitrabo Editorial
Crypto scam, Morgan DF Fintoch, has been accused of stealing almost $32 million in users’ funds. On-chain detective ZachXBT revealed the allegation of the scheme that claimed association with the reputable financial institution, Morgan Stanley.
According to ZachXBT’s investigation, the project promised attractive investment opportunities but is now entangled in a massive fraud that has resulted in significant financial losses for investors.
Details of Alleged Exit Scam
ZachXBT took to Twitter to disclose a detailed diagram revealing how the funds were used by Morgan DF Fintoch, strongly suggesting the scheme’s involvement in an exit scam. The fraudulent project had lured users by promising a remarkable 1% daily interest on their investments. However, users have reportedly been unable to withdraw their funds from the platform.
Morgan Stanley has distanced itself from any connection with DF Fintoch, emphasizing that it has no affiliation with the project. In May, the Monetary Authority of Singapore (MAS) also issued an alert warning the public about Fintoch’s activities.
Morgan DF Fintoch had fabricated its supposed CEO’s identity, Bob Lambert, by using actor Mike Provenzano’s picture, exposing the project’s dishonesty.
The fraudulent project managed to amass a substantial following on Twitter, boasting over 71,000 followers and even received coverage in well-known publications.
Rise of Cryptocurrency Scams and Rug Pulls
The growing prevalence of cryptocurrency scams and rug pulls is alarming, and regulatory authorities are working to establish clearer guidelines and stricter regulations to combat these fraudulent projects. Standards for project audits, licensing requirements, and transparent disclosures are being set high to create a more secure environment for investors to navigate.
-Featured image from Financial Times