Fraud and misappropriation of funds
Neel the CEO is going to jail. They lied about diversification through three different failing to disclose that 95% of user funds were lent to Genesis until after they had already paused all withdrawals. Their Assets Under Management for $78 million listed on their website is false, Genesis’ bankruptcy report that was leaked to the public shows that Donut has $78 million in unsecured loans instead. They lied about having 125% collateral and they lied about having 100% liquidity on their website of that was the case why can’t anyone withdraw their funds? The CEO Neel has disconnected his phone number following the announcement of Genesis filing for bankruptcy .If you say anything negative about them on social media they will block. Neel and the entire Donut team should go to prison for fraud, misrepresentation and misappropriation of user funds.
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Scary service!
I too feel deceived by their super nice and easy to use app, put all my savings over 200K in their safe and secure savings account for 2 months, trusting I can withdraw anytime but when I tried to withdraw this Genesis mess happened, since November account is blocked and money stuck. Feel so stupid to believe their service is safe, been so scared, don’t know what to do. I’m a single mom, been saving that money for over 10 years to buy a house and my family emergency fund, college education, unemployment emergency- all is in there. It’s been affecting me and my child tremendously - had to stop house search, we live below means, depressed and stressed and scared of losing the only money we have all because of this stupid donut app. The weekly communications don’t really give comfort that money will come back, it makes my suffering continue. Please Donut have mercy and give me my principal back! My family can’t survive like this! It’s not my fault that Genesis ran into liquidity and didn’t inform you. You stated you were in regular contact with all your lenders how could you not know? How could you not tell your users to withdraw earlier to avoid this stress?
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Do not use
All investing comes with risk but Donut did a poor job at actually explains this risk. The company likes to talk about their high rates and how secure their investments are and how their accounts should be viewed as a savings account. This is false advertising. Last spring one of their investments turned into a loss. Passed this loss onto to their customers. I was finally about to break even, when another one of their lenders froze their program. This lead to Donut freezing it’s customers accounts. Over a month later I’m unable to withdraw anything. So much for using their “buckets” to help save for my life goals. Even when deposits and withdraws start again I recommend skipping this app.
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DO NOT USE DONUT
Their operations are very shady. Please do not invest with Donut.
Some points to consider before you want to try them:
1. They will randomly deduct money from your account and will give the reason as “Market Adjustment”. Their is no defined percentage for this Market adjustment. They deducted almost 13% from my account and had no explanation to why it was 13%. Tomorrow they can deduct 23% and say it was Market Adjustment and you cant ask them anything more than that.
2. Their customer service is very poor. The number they have listed on their site does not work. They can only be contacted through chat that too 8 out of 10 of their responses are standard replies.
3. They can stop you from taking money out of your account at any time. They have put a hold on transferring money from Donut for more than a month and now they have changed it to 5% cash out only. So in case you have an emergency and want to cash out YOUR own Money, they can prevent you from doing that.
4. If you say anything against them on social media, they block your account and remove your comments from their page. I reached out to their facebook page, they deleted my comment and then blocked me from writing any more comments on their page.
Overall my experience with Donut has been horrible and I would highly recommend you to not use this app. Its better to invest in stocks, you can atleast see whats happening to your money.
PLEASE DO NOT USE THIS APP.
Some points to consider before you want to try them:
1. They will randomly deduct money from your account and will give the reason as “Market Adjustment”. Their is no defined percentage for this Market adjustment. They deducted almost 13% from my account and had no explanation to why it was 13%. Tomorrow they can deduct 23% and say it was Market Adjustment and you cant ask them anything more than that.
2. Their customer service is very poor. The number they have listed on their site does not work. They can only be contacted through chat that too 8 out of 10 of their responses are standard replies.
3. They can stop you from taking money out of your account at any time. They have put a hold on transferring money from Donut for more than a month and now they have changed it to 5% cash out only. So in case you have an emergency and want to cash out YOUR own Money, they can prevent you from doing that.
4. If you say anything against them on social media, they block your account and remove your comments from their page. I reached out to their facebook page, they deleted my comment and then blocked me from writing any more comments on their page.
Overall my experience with Donut has been horrible and I would highly recommend you to not use this app. Its better to invest in stocks, you can atleast see whats happening to your money.
PLEASE DO NOT USE THIS APP.
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Not a scam, just crypto volatility
Good news to everyone who thinks this is a scam; it’s not! In recent weeks, Donut was forced to pause deposits and withdrawals due to Genesis, their primary lending partner, having a liquidity crisis as a result from panic after FTX collapsed. Yes I have a lot of money wrapped up in Donut right now, and yes it’s made financials for me more difficult when I’m unable to access my savings, but the Donut team is in the same boat. They’re not profiting off of this, and are taking losses in order to protect Donut’s users. Their customer support team is top-tier and are so patient and understanding, and I am convinced that they are doing everything they can to protect the funds in Genesis. They even have updates on the situation twice a week. They’re doing everything right, and I can’t express enough gratitude for the team for what they’re doing right now. After this situation is resolved, I plan on continuing to use Donut for my savings. They have proven themselves to be resilient and worth the risk. Thank you Donut team for everything you do!!
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