The team behind the FinSoul gaming project has been accused of a major fraudulent scheme, scamming investors out of $1.6 million through market manipulation. According to a report from CertiK, the FinSoul team allegedly used paid actors to pose as executives and raised funds for the development of a gaming platform. However, they instead transferred the funds to themselves, leaving investors with nothing.
The scam involved transferring $1.6 million in Tether (USDT) from investors to the FinSoul team. To hide the origin of the funds, the developers reportedly laundered the money through a cryptocurrency mixer named Tornado Cash.
This is not the first time the FinSoul developers have been accused of misconduct. Earlier this year, the Fintoch DeFi project claimed to have adopted advanced technology for the development of the FinSoul metaverse platform. However, it was later discovered that the Fintoch project itself had performed an exit scam, allegedly stealing $31.6 million and attempting to launder the funds on the Tron blockchain.
CertiK revealed that the FinSoul team rebranded as “Standard Cross Finance (SCF)” in August. Evidence showed that the key executives of Fintoch and Standard Cross Finance were the same individuals, who turned out to be actors from the entertainment industry.
Despite their tarnished reputation, the rebranded Standard Cross Finance team continued to promote FinSoul on platforms like YouTube and Telegram, even organizing a promotional event in Vietnam.
Blockchain Data Shows Market Manipulation by FinSoul
Blockchain data revealed that on October 10, the FinSoul project launched its token contract on the BNB Smart Chain network, minting 100 million FinSoul (FSL) tokens. The deployer account retained 97 million FSL tokens after transferring a portion to other accounts. Initial trading of FSL started at $0.3911 per token and surged to $17.5774 before dropping to around $5.
Between 4:30 pm and 5:00 pm UTC, the price suddenly collapsed to nearly zero, coinciding with the transfer of the remaining 97 million FSL tokens to another address and the sale of the entire token supply into the liquidity pool. This resulted in the draining of $1.6 million worth of Binance-pegged USDT from the pool.
Despite the allegations, the Standard Cross Finance team managed to convince investors to reinvest in their project, relaunching FSL with a new token contract currently valued at $1.29 per coin.