A Crypto Rewards Platform That Promised 40% APY Halts Withdrawals, Citing âMarket Fluctuationsâ
A crypto rewards platform called Freeway.io has notified users that it decided to reallocate capital in order to âmanage exposure to future market fluctuations and volatility.â 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 âunprecedented volatility.â In order to protect itself from wild fluctuations, it decided to reallocate the companyâs funds in order to ensure âthe long term sustainability and profitability of the Freeway Ecosystem.â
The Freeway crypto rewards platform promised users up to 40% annual percentage yield (APY) on âSuperchargerâ accounts. Interestingly, just before the rewards platform published its notice to customers on October 23, the day before, the crypto whistleblower known as âFatmanâ warned clients to withdraw from the rewards platform immediately.
âIf anyone has funds in crypto yield platform Freeway, I would suggest withdrawing right away,â 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 âwhile we complete this process, we cannot comment further beyond this statement.â According to Freewayâs web portal, the APY funds paid out to customers derive from “various arbitrage [and] trading investment spreads.” After Fatmanâs tweet, a Freeway supporter dubbed âWestcoast Lifeâ wrote that he spent over 12 months verifying the legitimacy of the application.
âNot a ponzi, Iâve spent over a year verifying this. Nice try tho Fat guy,â Westcoast Life wrote to Fatman. The whistleblower then said he would bet the individualâs âentire Freeway account that it is a Ponzi.â Westcoast Life decided to take the bet. Furthermore, the Freeway supporter blocked Fatman following the announcement from Freeway, after an individual said that the personâs tweet âaged well.â
After the announcement stemming from the Freeway.io team, the platformâs 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: âââWe trust you guys – please keep us updated.â And when someone criticized the ânot a Ponziâ statement 24 hours later, Westcoast Life replied: âWeâll see.â In response to the comment. Another individual scoffed at Westcoast Lifeâs comment, and said: âWe SAW you get rugged less than 24 hours after gloating.â
*This is a developing story and Bitcoin.com News will update our readers as soon as more information is made public.
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