Cryptocurrency investors claim that funds cannot be withdrawn, with approximately $8 million trapped in Gray Digital

ChainCatcher news, according to DL News, multiple crypto investors have reported being unable to withdraw their funds from the Gray Digital fund. Security service company Assure DeFi estimates that approximately $8 million is trapped in the fund.

Since its establishment in June 2022, Gray Digital has attracted around 1,000 depositors, with total deposits exceeding $42 million. Gray Digital has recorded an annual return rate of nearly 200%, attracting investors by claiming to generate profits through trading in stocks, derivatives, bonds, and cryptocurrencies. However, six investors have already revealed that their withdrawal requests have been denied.

Other screenshots from conversations on Gray Digital's Discord server show that the fund's head, Gauvin, blames the situation on bad actors. He stated that these mysterious individuals coordinated large-scale withdrawals, spread "conspiracy theories," and contacted his own bank, resulting in his account being frozen.

The U.S. Securities and Exchange Commission (SEC) has launched an investigation into the platform and issued subpoenas to relevant parties.