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
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 “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.”
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 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 “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 wrote to Fatman. The whistleblower then said…
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