The development team behind the gaming project FinSoul finds itself embroiled in controversy as accusations of a massive exit scam emerge. Investors have allegedly been defrauded of $1.6 million through market manipulation and deceitful tactics. These shocking revelations have sent shockwaves through the blockchain community.
The Allegations and Market Manipulation
According to a recent report from blockchain security platform CertiK, the FinSoul team stands accused of employing paid actors to pose as executives in order to raise funds under false pretenses. Investors were led to believe that their money would be used to develop a gaming platform, but instead, the funds were allegedly transferred to the team’s own accounts, leaving investors empty-handed.
In an attempt to obscure the origin of the funds, the developers supposedly laundered the money through a cryptocurrency mixer called Tornado Cash. This deceitful strategy aimed to cover up the unlawful activities of the FinSoul team.
A Pattern of Misconduct
What makes this case particularly concerning is that it isn’t the first time the FinSoul developers have faced accusations of misconduct. Earlier this year, the decentralized finance (DeFi) project Fintoch revealed that it had adopted advanced technology to develop the FinSoul metaverse platform. However, it was later discovered that Fintoch itself had perpetrated an exit scam, reportedly stealing $31.6 million and attempting to launder the funds on the Tron blockchain.
These revelations have raised serious doubts about the integrity and intentions of the FinSoul team. The accusations of misconduct, coupled with the alleged exit scams, paint a grim picture of deceit and dishonesty.
“The FinSoul team had rebranded as ‘Standard Cross Finance (SCF)’ in August,” stated CertiK.
It seems that the FinSoul team attempted to hide its tarnished reputation by changing its name. CertiK produced evidence showing that the key executives of Fintoch and Standard Cross Finance were identical individuals. These individuals, including the CEO, CFO, and COO, turned out to be actors from the entertainment industry. Shockingly, the project’s chief technology officer even appeared in a promotional poster for an entertainment company.
Despite their questionable background, the rebranded Standard Cross Finance team shamelessly continued to promote FinSoul on platforms like YouTube and Telegram. They went as far as creating a video showcasing an alleged “R&D Headquarters” and organizing a promotional event in Vietnam, all of which were orchestrated to deceive unsuspecting investors.
The Token Deployment and Price Manipulation
Blockchain data reveals that on October 10, the FinSoul project deployed its token contract on the BNB Smart Chain network. They minted 100 million FinSoul (FSL) tokens, with the deployer account retaining 97 million FSL tokens. An interesting development emerged as one of the transfers involved creating a liquidity pool for FSL on PancakeSwap, a decentralized exchange.
The initial trading of FSL started at $0.3911 per token and experienced a rapid surge within hours, reaching $17.5774 before eventually settling around $5. However, a sudden and dramatic price collapse occurred between 4:30 pm and 5:00 pm UTC. This collapse coincided with two significant events: the transfer of the remaining 97 million FSL tokens to another address and the subsequent sale of the entire token supply into the liquidity pool. These actions resulted in the draining of $1.6 million worth of Binance-pegged USDT from the pool, leaving investors devastated.
It is worth noting that despite their alleged fraudulent activities, the Standard Cross Finance team managed to convince some investors to reinvest in their project. They relaunched FSL with a new token contract, which currently holds a value of $1.29 per coin. This raises questions about the future impact on investors, as they navigate the aftermath of this sordid affair.
“The rise and fall of FinSoul serves as a cautionary tale for the blockchain community,” warns CertiK. “Investors must remain vigilant and conduct thorough due diligence before putting their hard-earned money into any projects.”
