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

A crypto rewards platform referred to as Freeway.io has notified customers that it determined to reallocate capital with a purpose to “manage exposure to future market fluctuations and volatility.” In doing so, customers are unable to withdraw funds from the platform, and the Freeway staff defined that amid the reallocation course of, the staff couldn’t remark additional.

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

The crypto group is coping with one other rewards platform that has determined to halt withdrawals amid a choice to reallocate funds. On October 23, the crypto rewards firm Freeway.io, formally referred to as Aubit, revealed a discover to clients that claims international alternate (FX) and crypto markets have been experiencing “unprecedented volatility.” In order to guard itself from wild fluctuations, it determined to reallocate the corporate’s funds with a purpose to guarantee “the long term sustainability and profitability of the Freeway Ecosystem.”

The Freeway crypto rewards platform promised customers as much as 40% annual proportion yield (APY) on “Supercharger” accounts. Interestingly, simply earlier than the rewards platform revealed its discover to clients on October 23, the day earlier than, the crypto whistleblower often called “Fatman” warned purchasers to withdraw from the rewards platform instantly.

“If anyone has funds in crypto yield platform Freeway, I would suggest withdrawing right away,” Fatman tweeted on October 22. The crypto whistleblower additional added:

I imagine they’re working a Ponzi scheme. In my opinion, it’s seemingly that Freeway will collapse inside the subsequent few months and that each one depositors will lose the whole lot.

Freeway Supporter Doubles Down

The Freeway staff by no means defined when the platform will likely be absolutely operational once more, and it additional famous that “while we complete this process, we cannot comment further beyond this statement.” According to Freeway’s internet portal, the APY funds paid out to clients 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 applying.

“Not a ponzi, I’ve spent over a year verifying this. Nice try tho Fat guy,” Westcoast Life wrote to Fatman. The whistleblower then mentioned he would guess the person’s “entire Freeway account that it is a Ponzi.” Westcoast Life decided to take the guess. Furthermore, the Freeway supporter blocked Fatman following the announcement from Freeway, after a person said that the particular person’s tweet “aged well.”

After the announcement stemming from the Freeway.io staff, the platform’s native token freeway (FWT) plummeted greater than 72% in opposition to the U.S. greenback. The crypto asset is now down 95.3% from the all-time excessive recorded on May 16, 2021. Meanwhile, the person Westcoast Life appears to nonetheless belief that the Freeway.io system will likely be okay. Bitcoin.com News emailed the Freeway crypto rewards firm and our newsdesk has but to obtain a response.*

16 hours in the past, he wrote: “​​We trust you guys – please keep us updated.” And when somebody criticized the “not a Ponzi” assertion 24 hours later, Westcoast Life replied: “We’ll see.” In response to the remark. Another particular person scoffed at Westcoast Life’s remark, and said: “We SAW you get rugged less than 24 hours after gloating.”

*This is a growing story and Bitcoin.com News will replace our readers as quickly as extra info is made public.

What do you concentrate on Freeway.io halting withdrawals and citing market volatility? Let us know your ideas about this topic within the feedback part beneath.