$160 Million Rug Pull? – Crypto Staking Platform Freeway Halts Withdrawals Citing ‘Unprecedented Volatility’

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$160 Million Rug Pull? – Crypto Staking Platform Freeway Halts Withdrawals Citing ‘Unprecedented Volatility’

Freeway, a UK-based cryptocurrency platform, allegedly stopped accepting withdrawals on Sunday owing to unprecedented ranges of volatility, however some suppose that is actually a ruse.

Members have been inquiring in Freeway’s Telegram channel, “Has anybody been capable of withdraw throughout the earlier days?,” with many repeating that they have not – and that they tried even earlier than the notification from Freeway was launched.

Per a discover presently popping up on Freeway’s web site and which is shared on Twitter, 

“As all of you can be conscious, there was unprecedented volatility in Foreign Exchange and Cryptocurrency markets in current instances. Freeway has due to this fact determined to diversify its asset base to handle publicity to future market fluctuations and volatility making certain the long run sustainability and profitability of the Freeway Ecosystem.”

They declare that this may enable Freeway to “keep the very best degree of Supercharger simulation rewards.”

With its Supercharger product, the undertaking gives customers yearly returns of as much as 43%. According to the assertion, Freeway Superchargers could solely be used inside the Freeway platform and are “digital replicas of main crypto and fiat currencies.”

The ‘Risk Warning’ web page states that, 

“Virtual simulation tokens are closed-loop tokens present solely inside the Freeway Platform, they can’t be traded on a secondary market, will not be obligated to be redeemed or exchanged by Freeway and create no monetary entitlements.”

The notification additionally indicated that Freeway would allocate funds to its underlying portfolio whereas the aforementioned course of was taking place and that, “for a restricted time” and “till our new methods are applied,” it could not be buying Supercharger simulations.

It is unclear what these new methods are.

It added that,

“We will notify you once we are able to recommence partial Supercharger simulation purchases (buy-backs) after which once more as we will recommence full Supercharger simulation purchases in addition to on platform Freeway Token (FWT) Deposits and Buys.”

Furthermore, the staff behind the undertaking stated that they’d not be commenting additional whereas they full the method.

This has been one other level of dissatisfaction inside the neighborhood, as customers stated they’d want getting extra info. One member wrote on Telegram, 

“While I get that the senior management needs to be cautious, I do not suppose complete silence is an efficient selection.”

Some even speculated that this selection could by some means be linked to the lender Celsius Network and its notorious fall – maybe Celsius had lent funds to Freeway, however others dismissed this principle, arguing that one thing would have occurred quickly after Celsius’ chapter.  

A rug-pull?

Though it’s unclear what number of precise customers suspect one thing nefarious could also be taking place right here, commenters elsewhere appear to imagine so.

Popular pseudonymous Twitter person FatMan shared the withdrawal halt information on Sunday, additionally claiming that the Freeway web site appears to be scrubbing the names and pictures of some executives.

The Wayback Machine confirms the removing of the ‘Team Freeway’ part of the web site, because the 8 executives it reveals are not listed on the web site. And neither is the “Our companions” part.

1666696246 109 160 Million Rug Pull – Crypto Staking Platform Freeway Halts
https://web.archive.org/web/20220901120203/https://freeway.io/

Some influencers who beforehand supported the undertaking have allegedly deleted their tweets about it.  

The Freeway web site claims that they’ve processed greater than $161 million in worth, and that there have been greater than $37 million in annual rewards earned.

If true, it’s unclear how the earnings have been yielded. 

Notably, FatMan tweeted in regards to the platform on Saturday as properly, advising customers to withdraw their funds instantly. 

“I imagine they’re working a Ponzi scheme. In my opinion, it is seemingly that Freeway will collapse inside the subsequent few months and that each one depositors will lose every little thing,” stated the person. 

The declare got here after FatMan had observed bigger withdrawals being “delayed”. In the submit, FatMan lists three arguments for this undertaking being a fraud:

  • false disclosures on their web site,
  • shady authorized construction,
  • unclear monetization technique.

FatMan claimed that,

“Freeway managed to amass $150m+ in person deposits by offering an air of TradFiesque legitimacy.”

Some commenters on-line additionally took concern with the “unprecedented volatility” line in Freeway’s discover, arguing that the crypto market, following its entrance into the bear territory, has been calm – for crypto, that’s. 

Bitcoin (BTC), for instance, is unchanged in a day, down 1.4% in per week, and up 1.8% in a month. It’s additionally been buying and selling at round $20,000 since late August. 

Meanwhile, the undertaking’s native token FWT, 866th by market capitalization, is up greater than 9% in a day and down a whopping 77% in per week. At 8:45 UTC on Tuesday morning, it’s buying and selling at $0.0016. The coin had seen a significant crash on Saturday.

FWT 7-day value chart:

1666696246 722 160 Million Rug Pull – Crypto Staking Platform Freeway Halts
Source: coingecko.com

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