A Crypto Rewards Platform That Promised 40% APY Halts Withdrawals, Citing ‘Market Fluctuations’
A crypto rewards platform called Freeway.io has notified users that it decided to reallocate capital in order to “manage exposure to future market fluctuations and volatility.” In doing so, users are unable to withdraw funds from the platform, and the Freeway team explained that amid the reallocation process, the team could not comment further. Crypto Rewards Platform Freeway.io Pauses Withdrawals, Project Accused of Being a Ponzi Scheme
The crypto community is dealing with another rewards platform that has decided to halt withdrawals amid a decision to reallocate funds. On October 23, the crypto rewards company Freeway.io, formally called Aubit, published a notice to customers that claims foreign exchange (FX) and crypto markets were experiencing “unprecedented volatility.” In order to protect itself from wild fluctuations, it decided to reallocate the company’s funds in order to ensure “the long term sustainability and profitability of the Freeway Ecosystem.” Freeway.io’s native crypto asset freeway (FWT) slid more than 72% lower against the U.S. dollar on Sunday evening into Monday morning (ET).
The Freeway crypto rewards platform promised users up to 40% annual percentage yield (APY) on “Supercharger” accounts. Interestingly, just before the rewards platform published its notice to customers on October 23, the day before, the crypto whistleblower known as “Fatman” warned clients to withdraw from the rewards platform immediately.
“If anyone has funds in crypto yield platform Freeway, I would suggest withdrawing right away,” Fatman tweeted on October 22. The crypto whistleblower further added: I believe they are operating a Ponzi scheme. In my opinion, it’s likely that Freeway will collapse within the next few months and that all depositors will lose everything. Freeway Supporter Doubles Down
The Freeway team never explained when the platform will be fully operational again, and it further noted that “while we complete this process, we cannot comment further beyond this statement.” According to Freeway’s web portal, the APY funds paid out to customers derive from “various arbitrage [and] trading investment spreads.” After Fatman’s tweet, a Freeway supporter dubbed “Westcoast Life” wrote that he spent over 12 months verifying the legitimacy of the application.
“Not a ponzi, I’ve spent over a year verifying this. Nice try tho Fat guy,” Westcoast Life wrote to Fatman. The whistleblower then said he would bet the individual’s “entire Freeway account that it is a Ponzi.” Westcoast Life decided to take the bet. Furthermore, the Freeway supporter blocked Fatman following the announcement from Freeway, after an individual said that the person’s tweet “aged well.”
After the announcement stemming from the Freeway.io team, the platform’s native token freeway (FWT) plummeted more than 72% against the U.S. dollar. The crypto asset is now down 95.3% from the all-time high recorded on May 16, 2021. Meanwhile, the individual Westcoast Life seems to still trust that the Freeway.io system will be ok. Bitcoin.com News emailed the Freeway crypto rewards company and our newsdesk has yet to receive a response.*
16 hours ago, he wrote: “We trust you guys – please keep us updated.” And when someone criticized the “not a Ponzi” statement 24 hours later, Westcoast Life replied: “We’ll see.” In response to the comment. Another individual scoffed at Westcoast Life’s comment, and said: “We SAW you get rugged less than 24 hours after gloating.”
*This is a developing story and Bitcoin.com News will update our readers as soon as more information is made public. Tags in this story Aubit, crypto rewards, crypto risk, depositors, Fatman, fluctuations, Freeway, Freeway supporter, Freeway.io, Freeway"s website, FTW supporter, halted withdrawals, Insolvency, paused withdrawals, Ponzi, Ponzi Scheme, risk, Risky, Rugged, volatility, Westcoast Life, whistleblower, Withdrawals
What do you think about Freeway.io halting withdrawals and citing market volatility? Let us know your thoughts about this subject in the comments section below. Jamie Redman
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today. Santander Proposes Project to Tokenize and Trade Properties With the Brazilian CBDC NEWS | 20 hours ago A Look at the First Phone-to-Phone Bitcoin Transfer Using a Nokia N900 Smartphone NEWS | 1 day ago
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