exit scam? Crypto project suddenly vanishes with $32 million

It seems that the crypto project DF Fintoch is a so-called exit scam has performed. The project had more than 138,000 users and a hefty $32 million in cryptocurrencies from its clients under management. According to blockchain researcher ZachXBT, users can no longer withdraw their assets.

Crypto exit scam

The project, which referred to itself as ‘Morgan DF Fintoch’, suggested it had ties to US bank Morgan Stanley. The bank itself has this now denied. There are also a number of other indications that show that something is seriously wrong with the project.

The project had a CEO named Bob Lambert. The photo however, of the CEO on the project’s website belongs to an actor named Mike Provenzano. In addition, the project promised a daily return of 1 percent to investors.

This promise attracted 138 thousand investors who are now victims of scams; a very large-scale crypto scam. ZachXBT found out that users’ assets were sent from the Binance Smart Chain to the Ethereum (ETH) and Tron (TRX) blockchains. It seems unlikely that the victims will see their money back.

Too good to be true…

As said, the platform promised a daily return of 1 percent. This equates to 100 percent return every 63 days. When platforms promise such high returns, alarm bells should immediately go off for every crypto investor. A guarantee of such returns is literally too good to be true.

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In comparison, staking crypto like ethereum or cardano (ADA) yields around 5 percent per year. Unfortunately, newbies in cryptoland are very sensitive to such scams and fall for them more easily. Always be alert to the possibility that something is a scam. A good rule of thumb in crypto land: if something sounds too good to be true, it usually is. Therefore, always do proper research before you decide to invest your money in something.

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