On August 13, 2025, California’s Department of Financial Protection and Innovation (DFPI) issued a desist and refrain order against Fintoch LLC and Morgan DF Fintoch LLC, prohibiting them from offering or selling securities in California without qualification under the Corporate Securities Law (CSL), per. The order targets Fintoch’s investments, classified as unqualified securities, sold via general solicitations on its website since 2023, per. No permit was issued, violating Corporations Code section 25110, and the DFPI mandates compliance or further enforcement, per. X posts from @DFPI_CA emphasize consumer protection, per.
Fintoch, a collapsed MLM crypto Ponzi scheme launched in 2022, used fictional executives like “Bobby Joe Lambert” (played by actor Mike Provenzano) and “William Thompson” (played by Joel Fry) in promotional videos and events, per. Scripts were provided for teleprompters, and actors posed as employees in a rented Silicon Valley office for a hoax tour video claiming blockchain innovation, per. The scheme offered investment contracts promising returns, defrauding investors through a crypto mining ruse and shitcoin exit-scam, per. Fintoch collapsed in May 2023 after a Singapore securities fraud warning, with losses unknown but tied to Chinese scammers, per. Fry later fronted Standard Cross Finance (SCF Chain), which collapsed in October 2023, per.
The DFPI order aligns with California’s aggressive stance on crypto fraud, similar to recent actions against Signix Fin Services and Mass Capital Access, per. Fintoch’s shell companies (Fintoch LLC and Morgan DF Fintoch LLC) highlight Ponzi tactics, echoing Forsage ($340M losses) and BitClub Network, per. No federal involvement is noted, but SEC scrutiny on MLM crypto could follow, per. Bitcoin (BTC) ($113,234) and Ethereum (ETH) ($4,070) remain stable, per CoinMarketCap, but the order reinforces risks in unregulated schemes, per. Investors should report scams to DFPI at dfpi.ca.gov, per.
Verify platforms via dfpi.ca.gov and avoid MLM schemes, per. Diversify into USDC or ETH with stop-losses below BTC’s $112,000, per TradingView. Follow @TheBlock__ on X for updates. Fintoch’s order may deter similar frauds, but $272M in California crypto losses in 2024 underscores vigilance, per. Regulatory clarity from the crypto bill could reduce such risks by 2026, per.
