Four days ago, the crypto rewards platform Freeway.io, formally called Aubit, halted withdrawals on October 23 after citing it was protecting the firm’s portfolio from “market fluctuations and volatility.” Two days later, the team updated the community and explained on Tuesday that “one of Freeway’s trading strategies appears to have failed and caused a substantial loss.”
Crypto Rewards Company Freeway Updates Crypto Community After Halting Supercharger Buy-Backs
The crypto rewards company Freeway.io was a platform that claimed to offer up to 40% annual percentage yield (APY) on “Supercharger” accounts. However, on October 22, the whistleblower known as “Fatman” published a tweet that warned people to get their funds off the Freeway platform.
“I believe they are operating a Ponzi scheme,” Fatman told his 103,000 Twitter followers. “In my opinion, it’s likely that Freeway will collapse within the next few months and that all depositors will lose everything.”
The following day, Freeway published an update that said it had to reallocate funds in order to protect the rewards company’s portfolio from “market fluctuations and volatility.” Amid the reallocation process, it said that operations would be halted and it could not comment further on the situation.
The news was followed with intense speculation and claims that some of the company’s employees were erased from the firm’s web portal. An internet archive of the company’s website confirms that specific employee names were deleted from the site at some point during the end of September. On October 25, Freeway’s Twitter account gave the public an update on where the company stands.
The language used is ambiguous and the team’s Twitter thread says: “The following is our understanding: One of Freeway’s trading strategies appears to have failed and caused a substantial loss to be incurred due to unexpected market volatility.” Freeway claims that it observed two “converging factors” that led to the incident — “the unprecedented USD rally and crypto volatility.”
Interestingly, the U.S. dollar rally has been known for quite some time and the so-called “unprecedented” rise has been well documented by the financial media. The U.S. dollar has been on the rise for well over six months and crypto volatility has been super minimal in recent times compared to most global assets.
Freeway further said that the “trade execution carried out by the…
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