A Crypto Rewards Platform That Promised 40% APY Halts Withdrawals, Citing ‘Market Fluctuations’

A crypto rewards level called Freeway.io has notified users that it decided to reallocate superior successful bid to “manage vulnerability to aboriginal marketplace fluctuations and volatility.” In doing so, users are incapable to retreat funds from the platform, and the Freeway squad explained that amid the reallocation process, the squad could not remark further.

Crypto Rewards Platform Freeway.io Pauses Withdrawals, Project Accused of Being a Ponzi Scheme

The crypto assemblage is dealing with different rewards level that has decided to halt withdrawals amid a determination to reallocate funds. On October 23, the crypto rewards institution Freeway.io, formally called Aubit, published a announcement to customers that claims overseas speech (FX) and crypto markets were experiencing “unprecedented volatility.” In bid to support itself from chaotic fluctuations, it decided to reallocate the company’s funds successful bid to guarantee “the agelong word sustainability and profitability of the Freeway Ecosystem.”

Freeway.io’s autochthonal crypto plus freeway (FWT) slid much than 72% little against the U.S. dollar connected Sunday evening into Monday greeting (ET).

The Freeway crypto rewards level promised users up to 40% yearly percent output (APY) connected “Supercharger” accounts. Interestingly, conscionable earlier the rewards level published its announcement to customers connected October 23, the time before, the crypto whistleblower known arsenic “Fatman” warned clients to retreat from the rewards level immediately.

“If anyone has funds successful crypto output level Freeway, I would suggest withdrawing close away,” Fatman tweeted connected October 22. The crypto whistleblower further added:

I judge they are operating a Ponzi scheme. In my opinion, it’s apt that Freeway volition illness wrong the adjacent fewer months and that each depositors volition suffer everything.

Freeway Supporter Doubles Down

The Freeway squad ne'er explained erstwhile the level volition beryllium afloat operational again, and it further noted that “while we implicit this process, we cannot remark further beyond this statement.” According to Freeway’s web portal, the APY funds paid retired to customers deduce from “various arbitrage [and] trading concern spreads.” After Fatman’s tweet, a Freeway protagonist dubbed “Westcoast Life” wrote that helium spent implicit 12 months verifying the legitimacy of the application.

“Not a ponzi, I’ve spent implicit a twelvemonth verifying this. Nice effort tho Fat guy,” Westcoast Life wrote to Fatman. The whistleblower past said helium would stake the individual’s “entire Freeway relationship that it is simply a Ponzi.” Westcoast Life decided to instrumentality the bet. Furthermore, the Freeway protagonist blocked Fatman pursuing the announcement from Freeway, aft an idiosyncratic said that the person’s tweet “aged well.”

After the announcement stemming from the Freeway.io team, the platform’s autochthonal token freeway (FWT) plummeted much than 72% against the U.S. dollar. The crypto plus is present down 95.3% from the all-time precocious recorded connected May 16, 2021. Meanwhile, the idiosyncratic Westcoast Life seems to inactive spot that the Freeway.io strategy volition beryllium ok. Bitcoin.com News emailed the Freeway crypto rewards institution and our newsdesk has yet to person a response.*

16 hours ago, helium wrote: “​​We spot you guys – delight support america updated.” And erstwhile idiosyncratic criticized the “not a Ponzi” connection 24 hours later, Westcoast Life replied: “We’ll see.” In effect to the comment. Another idiosyncratic scoffed astatine Westcoast Life’s comment, and said: “We SAW you get rugged little than 24 hours aft gloating.”

*This is simply a processing communicative and Bitcoin.com News volition update our readers arsenic soon arsenic much accusation is made public.

What bash you deliberation astir Freeway.io halting withdrawals and citing marketplace volatility? Let america cognize your thoughts astir this taxable successful the comments conception below.

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