Alleged Exit Scam: FinSoul Gaming Project Siphons $1.6 Million from Investors

Background

The development team behind the gaming project FinSoul has been accused of carrying out an exit scam, allegedly stealing $1.6 million from investors through market manipulation. This shocking revelation comes from a recent report by blockchain security platform CertiK, which has shed light on the alleged misconduct. It appears that the FinSoul team hired paid actors to pose as executives and raised funds under false pretenses.

Rebranding and Misconduct

This isn't the first time FinSoul's developers have faced allegations of misconduct. In May, decentralized finance project Fintoch claimed that it had adopted advanced technology to develop the FinSoul metaverse platform. However, it was later revealed that the original Fintoch project had performed an exit scam, stealing $31.6 million and attempting to launder the funds.

CertiK, in response to these allegations, claims that the team rebranded in August. They changed their name and social channels, with "Fintoch" becoming "Standard Cross Finance (SCF)." CertiK produced evidence showing that the key executives of both Fintoch and Standard Cross Finance are actually paid actors from the entertainment industry.

Marketing Efforts and Token Deployment

Despite the allegations, the rebranded team continued to promote FinSoul on YouTube and Telegram. They released videos showcasing an alleged R&D Headquarters and a promotional event in Vietnam. On October 10, the project deployed its token contract to the BNB Smart Chain network, minting 100 million FinSoul (FSL) tokens.

Market Manipulation and Price Collapse

Data from DEX Screener reveals that the price of FSL initially rose from $0.3911 to $17.5774 after the token deployment. However, between 4:30 pm and 5:00 pm UTC on October 10, the price suddenly collapsed, falling from approximately $5 to near zero. This coincided with the transfer of the remaining 97 million FSL tokens to another address and the subsequent sale of all tokens into the liquidity pool, resulting in the transfer of $1.6 million worth of Binance-pegged USDT.

Relaunch and Cautionary Reminder

Despite draining funds from investors twice, the Standard Cross Finance team has managed to convince investors to invest in their project once again. They have relaunched FSL with a new token contract, currently valued at $1.29 per coin. This serves as a cautionary reminder for crypto investors to thoroughly investigate new projects before committing funds, especially those without a functioning blockchain project.

The Issue of Rug Pulls in DeFi

This alleged exit scam by FinSoul is not an isolated incident. Rug pulls, or exit scams, have become a recurring problem in the world of decentralized finance. Other projects, such as Xirtam and Chibi Finance, have also been accused of stealing funds from investors. While some victims have been fortunate enough to have their funds returned, many others have suffered significant losses. It is crucial for investors to exercise due diligence and be cautious when investing in new projects.

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