Blockchain security platform CertiK has reported that the gaming project FinSoul executed a suspected exit scam, resulting in the disappearance of $1.6 million from investors. The scheme allegedly involved the hiring of actors to impersonate project executives.
Exit Scam Unveiled
FinSoul had purportedly employed actors to pose as its executives while raising funds for a gaming platform. Instead of developing the promised platform, the team is said to have transferred $1.6 million in bridged Tether from investors to their own accounts. Subsequent blockchain data reveals that these ill-gotten funds were then funneled through a cryptocurrency mixer, Tornado Cash.
Fintoch and SCF key executives. Source: CertiK
This isn’t the first time FinSoul’s developers have faced allegations of wrongdoing. Back in May, decentralized finance project Fintoch announced its adoption of the FinSoul metaverse platform. However, CertiK claims that the project’s CEO, COO, and CFO, as listed on their website, are individuals from the entertainment industry. Furthermore, the project’s CTO was found on a promotional poster for an entertainment company.
Rebranding and a Fresh Start?
FSL prices suddenly declined to near zero between 4:30 and 5 pm on October 10. Source: DEX Screener.
Fintoch had also been linked to an exit scam, allegedly stealing $31.6 million and attempting to launder the funds by transferring them to the Tron blockchain. CertiK noted that the team “rebranded” in August, changing their name and social channels to “Standard Cross Finance (SCF).” In a side-by-side comparison, key executives of both Fintoch and SCF appeared to be identical.
The Alleged Exit Scam Timeline
FSL attacker depositing funds to Tornado Cash. Source: BSCScan.
According to blockchain data, the project deployed its token contract to the BNB Smart Chain network on October 10, creating 100 million FinSoul (FSL) tokens. Shortly after, 97 million of these tokens were moved to a different address. At 4:35 pm UTC on the same day, this account sold all 97 million tokens into the liquidity pool, shifting $1.6 million worth of Binance-pegged USDT. The price of FSL had a sudden drop from around $5 to nearly zero.
Cointelegraph reached out to the Standard Cross Finance team but had not received a response at the time of publication.