Abstract：On May 24, 2023, renowned on-chain detective ZachXBT on social media exposed publicly that Fintoch, a blockchain financial platform, get involved in a potential Ponzi scheme. This article delves into the controversy surrounding Fintoch and highlights key warnings issued by prominent entities in the financial industry.
Introduction
On May 24, 2023, renowned on-chain detective ZachXBT on social media exposed publicly that Fintoch, a blockchain financial platform, get involved in a potential Ponzi scheme. The allegations claimed that Fintoch may have defrauded 31.6 million USDT on the BNB Chain and subsequently transferred funds to various addresses on Tron and Ethereum via BSC. Massive investors have complained that they cannot withdraw their funds. This article delves into the controversy surrounding Fintoch and highlights key warnings issued by prominent entities in the financial industry.
About Fintoch
Fintoch is an active blockchain financial platform operating in Southeast Asia, South Korea, Dubai, Hong Kong, and other regions. In recent times, the company has held events in Dubai and Vietnam, aiming to foster an atmosphere of credibility and financial strength. However, these events now raise questions about the platform's legitimacy and intentions.
Is there any risk of losing money by lending on Fintoch？
According to Fintoch, the difference between Fintoch and other Platforms is that Fintoch implements its HyBriid technology to realize the mandatory stop-loss function via smart contracts. When the investment reaches the liquidation condition (eg. When the borrowing period is up or the deposit is exhausted), the smart contract will automatically convert the funds into the investment currency and withdraw them to the borrowing contract wallet. If the borrowers investment is lost, the smart contract will force a stop loss to recover the funds.
However, is it surely reliable？ As far as we know, many investors were befuddled by Fintoch's so-called new technology and found themselves unable to withdraw the money after investing large amounts of money.
The Deceptive Team Page
One alarming aspect of Fintoch is the discrepancy between its website's team page and reality. According to ZachXBT, on the team page of its website, the person named “Bobby Lambert” is the CEO of Fintoch, but investigations have revealed that this person is not the actual CEO. Reports suggest that “Bobby Lambert” is a paid actor, further undermining Fintoch's credibility. This deception adds to the mounting evidence against the platform.
Warnings from Singapore Government and Morgan Stanley
Both the Singapore government and Morgan Stanley, a renowned financial institution, have previously issued warnings regarding Fintoch's investment scheme. These alerts signify the potential risks associated with the platform. Investors are urged to exercise caution and conduct thorough due diligence before engaging with Fintoch or similar entities.
Ponzi Scheme
Fintoch advertises itself as a blockchain financial platform created by Morgan Stanley, a claim that lacks substantiation. The platform entices users with a promise of a 1% return on investment per day, a classic characteristic of a Ponzi scheme. Such promises are unsustainable and should raise red flags for potential investors. It is crucial to recognize the signs of fraudulent investment schemes and prioritize the protection of one's financial assets.
WikiFX's Warning and Continued Monitoring
WikiFX, a platform providing comprehensive information on forex brokers, warns investors about Fintoch and its alleged fraudulent activities. Given the severity of the allegations and the impact on investors, WikiFX has pledged to closely monitor developments concerning Fintoch. Investors are advised to stay updated with reliable sources and exercise vigilance when navigating the blockchain investment landscape.
Conclusion
The allegations surrounding Fintoch, a blockchain financial platform, paint a concerning picture of potential fraud and a Ponzi scheme operation. Reports of funds being fraudulently transferred and investors' inability to withdraw their money highlights the need for caution. The disparity between the website's team page and reality, along with warnings from the Singapore government and Morgan Stanley, add further weight to the claims against Fintoch. Investors should exercise due diligence and rely on trustworthy sources to protect themselves from such deceptive schemes in the blockchain industry. Stay tuned for more information.
