Crypto Firm Claiming Association With Morgan Stanley Pulls Exit Scam, Disappears With $32M

Key Takeaways:

• DF Fintoch, a firm claiming association with Morgan Stanley, has likely pulled an exit scam.
• Morgan Stanley had issued a warning against the firm.

NEW DELHI (CoinChapter.com) — Another cryptocurrency scam has hit the market, with an obscure crypto firm, DF Fintoch, seemingly pulling an exit scam to steal nearly $32 million of users’ funds.

On-chain crypto investigator ZachXBT revealed the scam on Twitter. The exact mechanics of the exit scam remained fuzzy as Fintoch bridged the funds to multiple addresses on Tron/Ethereum. As a result, tracing the funds for a possible recovery became increasingly difficult.

The firm advertised a 1% daily ROI, but trouble began when several users complained about being unable to withdraw funds.

Furthermore, ZachXBT claimed the image of the CEO on the firm’s team page is fake, with DF Fintoch using the image of actor Mike Provenzano.

The team page on the Fintoch website names “Bobby Lambert” as the CEO when in reality he does not exist

ZachXBT alleged.

However, the Singapore government and Morgan Stanley issued warnings against the investment firm. The Monetary Authority of Singapore put DF Fintoch on the Investor Alert List, stating the firm did not have a license or authorization from the regulatory body.

Also Read: Ethereum Price Prediction: ETH Could Test $1.65K Before Fresh Increase

Furthermore, Morgan Stanley distanced itself from the firm, stating that DF Fintoch was using Morgan Stanley’s trade name, its “trademark or a variation thereof.”

We do not assume any responsibility for any transactions or results that may arise from the aforesaid platforms. Morgan Stanley does not have any affiliation or relationship with these platforms.

Morgan Stanley said in a statement

Spammers And Hackers Stole $452 Million In Q1 2023

Meanwhile, hackers and scammers were responsible for nearly $452 million in losses in the first quarter of 2023. The numbers mark a decline from 2022 Q1 figures, where the sector bled $1.3 billion in losses to hacks and spam.

Furthermore, April 2023 witnessed another $100 million in losses to exploits. Flash loans were the exploit of choice in 2023.

Though the numbers have dwindled since 2022, it remains a worrying trend that market participants remain susceptible to such scams. In May 2023, the infamous Bitcoin pizza day saw several pizza-themed tokens being born before ending up being either rug pulls or exit scams.

Investors and traders should do their own research before pouring money into a project. Read more about common crypto scams here.