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 halts withdrawals, project accused of being a Ponzi scheme
The crypto community is working with another rewards platform that has decided to stop withdrawals amid the decision to reallocate funds. On 23 October, crypto rewards company Freeway.io, formally known as Aubit, published a notice to customers claiming that the forex (FX) and crypto markets were experiencing “unprecedented volatility”. To protect itself from wild volatility, it decided to re-allocate company funds to ensure “the long-term stability and profitability of the freeway ecosystem.”
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 immediately,” Fatman tweeted on 22 October. 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 pro doubles down
The Freeway team never said when the platform would be fully operational again, and it added that “we cannot comment further from this statement until we complete this process.” According to Freeway’s web portal, the APY funds paid to customers are received from “various arbitrages”. [and] Trading investment spreads.” Following Fatman’s tweet, a freeway supporter named “Westcoast Life” wrote that he spent more than 12 months verifying the validity 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.”
The platform’s native token Freeway (FWT), the platform’s native token, is down over 72% against the US Dollar following the announcement made by the Freeway.io team. The crypto asset is now down 95.3% from the all-time high recorded on May 16, 2021. In the meantime, the individual Westcoast Life is still confident that the Freeway.io system will be fine. Bitcoin.com News emailed 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.”
