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

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

A new rewards platform, Freeway.io (formerly Aubit), has stopped withdrawing 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.”

A Crypto Rewards Platform That Promised 40% APY Halts Withdrawals, Citing ‘Market Fluctuations’
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 tweetedOct 22. Additional information was provided by the whistleblower in crypto:

They are running a Ponzi scheme, according to me. 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 wroteFatman. The whistleblower then said he would bet the individual’s “entire Freeway account that it is a Ponzi.” Westcoast Life decidedTake the bet. Additionally, Freeway supporters blockedFatman, after an announcement by Freeway 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. Now, the crypto asset has fallen 95.3% to its all-time record high of May 16, 2021. The individual Westcoast Life still believes that Freeway.io will work. We have yet to hear back from them.*

He was born 16 hours ago 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.

This story contains tags
Aubit, Crypto Rewards, Crypto Risk, Depositors. Fatman. Freeway.io. Freeway’s Website. FTW Supporter. Withdrawals, halted withdrawals.

Do you have any thoughts about Freeway.io stopping withdrawals or citing market volatility as a reason? Please share your views on this topic in the comment section.

Jamie Redman

Jamie Redman is the News Lead for Bitcoin.com News. He also lives in Florida and works as a journalist covering financial technology. Redman joined the cryptocurrency community in 2011 and has been active since then. Redman is passionate about Bitcoin and open-source codes. Redman has contributed more than 6000 articles to Bitcoin.com News since September 2015. These articles are about disruptive protocols that are emerging.

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