LAF (Lafite Protocol) has been confirmed as a Ponzi scheme and has completely collapsed. Key members have absconded with the funds, and police in multiple locations are investigating. Here is a summary of key information:
November 2024: Project Launch
LAF officially launched, claiming to offer high returns.
September 2025: Token Crash
The token price plummeted by 99%, the liquidity pool experienced a net outflow, and a liquidity crisis emerged.
December 2025: Complete Collapse
The platform shut down, investor funds were frozen and withdrawals were impossible, and key members absconded with the funds.
December 2025: Police Intervention
Police in multiple locations urgently intervened in the investigation, and 60 team leaders were arrested.
Project Characteristics and Risks
High-Return Temptation: Promising annualized returns as high as 7786% attracted a large number of investors.
Ponzi Scheme Nature: Lacking any real business operations, returns relied on new investor funds, a typical Ponzi scheme.
Technical Vulnerabilities: The smart contract was not audited by an authoritative institution; the project team included backdoors that could manipulate trading rules. Subsequent Impact
Over 10,000 investors have lost everything, and police in multiple locations have launched investigations.
Similar Ponzi schemes often use "high returns" and "blockchain" as bait; investors should be wary of such scams.