Spike in Complaints Against 'Finfluencers' in Singapore: What's Behind the Surge?

SINGAPORE – In a worrying trend, there were eight formal complaints lodged against financial influencers, commonly referred to as “finfluencers,” with the Monetary Authority of Singapore (MAS) in 2025. This marks a significant increase from the average of five complaints per year over the past five years, highlighting growing concerns about the conduct of these influential online personalities.

Minister of State for Trade and Industry Alvin Tan revealed this statistic during a parliamentary session on April 8. The majority of the grievances originated from statements made by two prominent finfluencers who disclosed their decisions to liquidate investments on a financial platform, leading to heightened anxiety among investors.

The situation escalated when Chocolate Finance, a financial services platform, halted instant withdrawals on March 10 following these public announcements. The surge in withdrawal requests attributed to the influencers' comments created an unexpected demand, prompting the company to pause the service.

Chocolate Finance, operating under ChocFin, holds a license from MAS to provide fund management services. The company clarified that the suspension was not due to liquidity issues, but rather a strategic move to manage the spike in transaction volume safely. They initially placed a $250 limit on Chocolate Visa debit card withdrawals, which was later increased to $1,000 after refining their liquidity management strategy.

By March 21, Chocolate Finance reassured its customers that all withdrawal requests submitted between March 10 and March 18 had been processed successfully, with clients receiving 100 percent of their capital and accrued returns. As the financial platform resumed normal operations, it maintained a processing timeframe of three to six business days for ongoing withdrawal requests.

Minister Tan emphasized the importance of responsible action by finfluencers, who play a dual role in awareness-building and enhancing financial literacy. However, he warned against crossing the line into providing regulated financial advice. He reiterated that consumers must thoroughly understand the terms and conditions associated with financial products before investing.

In light of recent events, MAS is conducting a review of the current regulatory framework governing risk management and disclosure practices within investment platforms to ensure compliance and safeguard consumer interests. This response is critical as fintech platforms have already been advised to clearly communicate the details of the underlying products offered in their investment accounts.

With the growing influence of social media on investment decisions, the conversation surrounding the accountability of finfluencers is more crucial than ever. As Minister Tan aptly put it, "Customers should seek professional financial advice on the suitability of a product if they are unsure," a reminder to prioritize informed decision-making in an increasingly complex financial landscape.

As financial influencers continue to shape market perceptions, understanding the implications of their advice and maintaining regulatory integrity will be paramount in fostering a transparent financial ecosystem.