Andras Crow-Hreidar 
Despite a decrease in hacks, the rise of ponzi pyramids in the crypto space is evident through the recent Fintoch affair . The project claiming affiliation with Morgan Stanley, abruptly vanished and took nearly $32 million in user assets . On-chain analyst ZachXBT revealed the scam exposing Fintoch’s “exit scam” strategy which involved transferring over $31 .6 million in Tether (USDT) from the Binance Smart Chain to multiple addresses on Tron and Ethereum networks .
Deceptive Tactics and False Affiliation with Morgan Stanley
Fintoch’s deceptive practices add to the troubling nature of the scam . The project masqueraded as “Morgan DF Fintoch,” exploiting the reputable image of the financial institution . However Morgan Stanley swiftly denied any association with the project . Additionally it was discovered that Fintoch had fabricated the identity of its CEO presenting Bob Lambert using actor Mike Provenzano’s image to create an illusion of legitimacy .
Ponzi Scheme Suspicions and Investor Alert
The question of whether Fintoch operated as a Ponzi scheme or not comes from its promise of a 1% daily return on investment while falsely claiming affiliation with Morgan Stanley . Investors should be cautious of such high returns from unregulated entities especially considering previous incidents like Terra’s Anchor protocol which promised a 20% annual return on a stablecoin . Financial regulators including the Monetary Authority of Singapore (MAS) have added Fintoch to their investor alert list emphasizing the associated risks .
Navigating Risks and Protecting Investors in the Crypto Space
Fintoch serves as a bitter reminder of the risks involved in investing in lesser-known crypto projects . As the industry continues to expand it is crucial for investors to be cautious, conduct thorough research (DYOR) and seek advice from reputable sources . Efforts to combat scams and protect users are vital for maintaining integrity and trust within the decentralized and loosely regulated cryptocurrency ecosystem .
